Amazon becomes the 2nd United States company to join the $1 trillion club

Ann Santiago
September 5, 2018

Amazon‚ following hot on the heels of Apple‚ has become the second United States company to achieve a market capitalisation in excess of $1-trillion.

Its shares traded as high as $2,050.50 before easing a little to end the session at $2,039.51, up 1.3 percent and just short of the milestone level of $2,050.2677.

It began the day needing just over $18bn worth of net value to reach $1trn - a month after Apple won the race to be the first company with such a market capitalisation.

It surged past the trillion dollar mark this afternoon, prompting experts so say it could become even bigger than Apple.

Amazon has impressed investors by successfully diversifying its business into virtually every corner of the retail industry, altering how consumers buy products and putting major pressure on many brick-and-mortar stores. Amazon Web Services, for instance, a unit that provides hosting and cloud computing for other businesses, brought in $20 billion of revenue in 2017. The tech juggernaut isn't alone anymore, however, as Amazon has reached $1 trillion valuation.

Apple started trading in December 1980 but its stock did not truly start to take flight for another 25 years, spurred by the iPhone, the breakthrough device that left competitors in the dust.

In the past quarter, Amazon posted its best-ever profit of US$2.5 billion as Bezos, whose stake in the company has made him the richest person, highlighted the importance of digital assistant Alexa that powers Amazon electronics along with cars, appliances and other connected devices. And they first hit $1,000 on October 27, 2017.

Amazon's market value hit US$1 trillion on Tuesday (Sep 4), the second company after Apple to hit the milestone, following an incredible journey for the internet giant which has kept a long-term focus since launching as an online bookseller two decades ago.

Amazon's stock has gained over 70% in 2018, according to CNBC.

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