Amazon is now a $1 trillion company

Amazon’s shares have more than doubled in the last year as its online shopping empire has boomed
Credit
Kim Kyung Hoon  Reuters

Amazon’s shares have more than doubled in the last year as its online shopping empire has boomed Credit Kim Kyung Hoon Reuters

The tech and retail behemoth, founded as an online bookstore by CEO Jeff Bezos in 1994, has only been consistently profitable since 2015.

Market watchers have been expecting both Amazon and Apple to eventually have valuations topping $1 trillion.

Amazon.com Inc on Tuesday briefly joined Apple Inc to become the second $1 trillion (777.79 billion pounds) publicly listed USA company after its stock price more than doubled in a year as it grew rapidly in retail and cloud computing.

The Seattle-based company has cemented customer loyalty through its Echo voice devices and the Prime membership program that offers fast, free shipping as well as music and video streaming perks.

Amazon shares were last up 1.1 percent at $2,035.69, pulling back slightly from the milestone level of $2050.2677.

Shares of the e-commerce giant gained about 2% in trading Tuesday to hit an all-time high of $2,050.27.

If the online retailer's shares keep up their recent pace, it would be a matter of when, not if, Amazon's stock market valuation eclipses that of iPhone maker Apple, which reached $1 trillion on August 2. Most notable was the speed with which Amazon hit the milestone, with its shares having more than tripled in the past three years. That puts the company's market capitalization-the number of its outstanding shares multiplied by share price-at $1 trillion. It first reached $100 on October 23, 2009.

Apple topped that mark in early August.

"The difference between the two is that Amazon has room to grow within its two main businesses". Although it is well established in the U.S. and United Kingdom, it has huge scope to grow in the rest of Europe and Asia, especially India.

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