Amazon fails to maintain $1 trillion valuation again

Amazon.com Inc. looked like it would become tech’s newest trillion-dollar company Friday, but came up just barely short after hitting the mark in intraday trading, the third time the e-commerce giant has touched $1 trillion in a trading session but failed to maintain it through the close.

Shares of Amazon AMZN, +7.38% increased 7.4% Friday, giving it a market value at the close of $995.9 billion, according to FactSet, after rising as much as 9.9% in intraday trading. Amazon also briefly touched $1 trillion in intraday trading on Sept. 4, 2018, but closed that day shy of the figure. It also was above $1 trillion last July in intraday trading, but also fell short by the close. Market capitalizations are only considered official at the close of trading.

Apple Inc. AAPL, -4.43% was the inaugural member of the exclusive $1 trillion club in August, followed by Microsoft Corp. MSFT, -1.48% last year. Google parent Alphabet Inc. GOOGL, -1.48%GOOG, -1.48% hit $1 trillion for the first time last month.

See also:Google becomes third U.S. tech company worth $1 trillion

Amazon came close to the milestone as its shares were bid up following a strong earnings report Thursday afternoon, but a rough day of trading eventually pulled it back down. The e-commerce powerhouse obliterated its underwhelming forecast and posted more than $3 billion in profit in a strong fourth-quarter report.

For more:Amazon earnings return to growth in holiday season, sending stock soaring toward $1 trillion valuation

Amazon’s earnings were bolstered by its booming cloud business. Amazon Web Services was responsible for $2.6 billion in operating profit, 67% of Amazon’s total, on revenue of $9.95 billion. Amazon expects its first-quarter sales will be between $69 billion and $73 billion, year-over-year growth of 16% to 22%.

“There was little to complain about in this quarter, supporting our view of Amazon as our top pick in internet,” Jefferies analyst Brent Thill said in a note Jan. 30. He maintains a Buy rating with a price target of $2,300.

Also read: Amazon one-day shipping is a hit with shoppers — and it cost less than the expected $1.5 billion.

The rising fortunes of some of tech’s biggest names come as the Justice Department and Federal Trade Commission investigate the business practices and dominant market positions of Amazon, Apple, Alphabet and Facebook Inc. FB, -3.64% Indeed, Wedbush Securities analyst Daniel Ives on Thursday predicted so-called FAANG companies will lead the industry’s stocks up another 25% in 2020, and longtime Apple analyst Gene Munster believes Apple can reach $2 trillion in 2020.