Amazon stock rose further on Thursday after the company’s market capitalization crossed above the milestone $2 trillion level on Wednesday. A potential strategy that would put the online retail giant squarely in competition with Chinese rivals such as Temu and Shein could be another support for the stock.
Amazon stock is up almost 6% in five days.
Shares in Amazon were less than 1% higher in U.S. premarket trading on Thursday after the stock jumped 3.9% on Wednesday amid a continued outperformance for the technology sector. Futures for the Dow Jones Industrial Average were falling 0.2% Thursday, as were those on the S&P 500 and Nasdaq Composite.
Recent momentum for the stock—up almost 6% in five days—has pushed Amazon’s market capitalization above the $2 trillion level, territory that only a few of the largest companies have occupied.
The $3 trillion market-cap club is the next major milestone for the shares—and it isn’t wild to believe Amazon can get there and rub shoulders with Microsoft, Apple, and Nvidia. A new strategy that could see its core online retail business face off against budget Chinese rivals like Temu and Shein may be one reason to hope Amazon could get there sooner rather than later.
Amazon plans to start shipping discount fashion, household goods, and other products directly from warehouses in China, The Wall Street Journal reported on Thursday, citing a slide presentation from an invite-only meeting with Chinese merchants.
This move would directly take on the likes of Temu and Shein, which have boomed in popularity among American consumers who have flocked to cheap goods shipped directly from China. Amid evidence that the likes of Temu represent a threat not just to budget U.S. retailers like Dollar General, but also Amazon, this move from the e-commerce giant makes sense.
Competing with Amazon is no joke, and investors may be taking note. Shares in PDD, which owns Temu, fell 1.3% on Wednesday and were another 1.8% lower in Thursday’s premarket.
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