“Amazon stock was rising on Tuesday, just enough to maintain its place as the S&P 500’s fourth-largest company by market value after overtaking Alphabet on Monday. It may owe Oracle a little bit of a thank you.
Shares of Amazon.com were up 2.6% at 2:09 p.m. on Monday, after rising 2.3% on Monday. With Monday’s move, Amazon passed Alphabet as the fourth-largest company in the U.S. for the first time since April 5. Alphabet’s stock has fallen 8.7% in September, while Amazon is off just 0.7%. Amazon’s market cap was $22 billion more than Alphabet’s at Monday’s close, according to Dow Jones Market Data.
Amazon had some good news for investors at an investor conference, noting that its cloud business, AWS, is gaining further traction in AI but that it’s also focused on “balancing expenditures with revenue growth,” according to BofA analyst Justin Post.
There was also good news from Oracle’s earnings. Yes, most of the good news was for Oracle stock, which has risen 12% on Thursday. But with the release of its earnings, Oracle and AWS said that they had come together with a new cloud product, Oracle Database@AWS. Oracle already has partnerships with Microsoft’s Azure and Google, but Post notes that the AWS/Oracle deal should be good for both companies. “Oracle & AMZN had been competitive for database customers, so new partnership suggests companies have a lot to gain by working together,” he writes.
Right now investors will just settle for gains.”
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