It has taken Amazon just 21 years to achieve the major feat, even as Apple took 38 years to top $1 trillion in market capitalization.
World’s largest e-commerce company Amazon Inc, has created history by achieving the $1 trillion market capitalisation. Notably, world’s richest man Jeff Bezos-run Amazon Inc is the only second firm in the planet to achieve the feat. The first to get there was smartphone-maker Apple, which got there on August 2nd. Amazon shares briefly crossed the $2,050.27 mark in intra-day trading yesterday, giving the online retail giant a market cap of slightly over $1,000,000,000,000, based on its latest total of 487,741,189 outstanding shares. The milestone was fueled by a roughly 1% increase in Amazon’s stock price.
Interestingly, it has taken Amazon just 21 years to achieve the major feat, even as Apple took 38 years to top $1 trillion in market capitalization. Amazon shares have been on a rising spree in the year so far, more than doubling in the time period. If the online retailer’s shares continue their dream-run, it would be a matter of time that Amazon’s stock market valuation eclipses that of iPhone maker Apple.
Following these two giants, tech rivals Microsoft and Google are closest in line to breach the trillion dollar mark in market capitalisation, with market caps around $850 billion and $840 billion respectively as of mid-day trading on Tuesday. Amazon shares have more than tripled in the past three years, as the company expands upon its dominant position in online and physical retail.
Notably, Amazon competes with Apple in a number of areas, with its digital assistant Alexa competing Siri and its Prime Music service taking on Apple Music. Apple is also expected to launch a Netflix-like streaming video service next year, with dozens of original series, that competes with Amazon Prime Video, Reuters reported.
“It says a lot about Amazon and its ever-increasing dominance of segments of the retailing world as well as the web services business. They have a tiny share of the worldwide retail sales market so there’s a lot left to capture there,” Peter Tuz, President Of Chase Investment Counsel In Charlottesville, Virginia told Reuters.