Investors are now seeking tech stocks that are viewed as staples, rather than ones that provide elective options.
Internet behemoth Amazon AMZN set a new record on Friday when its stock reached the largest increase in market capitalization in history during one day’s trading session.
Amazon’s stock added $191 billion in market value after rising 14% on Friday.
This record by Amazon surpasses the one set by Apple just last week when its strong earnings report added $179 billion in value the following day.
The previous record for a one-day market cap gain globally was the increase of $597 billion in November 2007 by PetroChina Co.
The company now has the fourth largest market cap after fellow tech giants Apple (AAPL) – Get Apple Inc. Report, Microsoft MSFT and Alphabet (GOOGL) – Get Alphabet Inc. Class A Report. Even after suffering its the largest-ever loss on Thursday, Meta (FB) – Get Meta Platforms Inc. Class A Report remains at the number seven spot.
Investors were pleased with the company’s stronger-than-expected second quarter earnings on Thursday, when it unveiled a price increase for its Prime members to an annual cost of $139 from $119. The rise was the largest one-day increase in nearly seven years.
Amazon’s gain comes one day after Facebook parent Meta Platforms lost $237 billion on a 26% loss after a disappointing earnings report on Thursday.
Investors are now seeking tech stocks that are viewed as staples, rather than ones that provide elective options, John Lynch, chief investment officer at Comerica Wealth Management, told the Wall Street Journal.
“Within tech we’re starting to see a delineation between necessities and wants,” he said. “In a rising rate environment, you’re going to have non-correlated moves in the market.”
The stock market closed mixed Friday as better-than-expected earnings reports boosted investor sentiment and Amazon contributed to the Nasdaq’s gain.
The Dow Jones Industrial Average finished down 21 points, or 0.06%, to 35,089, while the S&P 500 advanced 0.52% and the the Nasdaq Composite gained 1.58%.
