Amazon hits $1 trillion market value milestone

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 online retail behemoth's stock hit a new high of $2,049.50 per share around 11:30 a.m., Eastern time this morning, momentarily nudging its market cap over the trillion-dollar line.

Shares in the e-commerce giant rose almost 2% to a high of $2,050.50 in morning trade before slipping back.

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.

USA tech stocks have largely enjoyed years of gains as stock markets hit record levels - with a few wobbles along the way.

As soon as one company has reached that $1 trillion mark, you know it won't be long until another follows in suit - only weeks after it happened for Apple, Amazon has joined the ranks in the "trillion-dollar club". It is now worth about $1.1 trillion.

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Amazon.com on September 4 became the second USA company to reach $1 trillion in stock market value, just weeks after Apple hit the same milestone on August 2. If you've purchased something on Amazon or own one of its many Echo speakers or Fire tablets, then you've provided Amazon with data it has used in some capacity to improve its products and services - or better tailor its advertising - and therefore increase potential revenues and profits.

"Amazon's a little bit more dynamic than Apple because the iPhone has become more mature".

In the second quarter the unit accounted for 55 percent of Amazon's operating income and 20 percent of total revenue, according to Morgan. That puts the company's market capitalization-the number of its outstanding shares multiplied by share price-at $1 trillion.

Achieving the valuation marks the latest chapter in an astonishing story of growth for the company, founded by businessman Jeff Bezos in Seattle, Washington, in 1994. It has held above that level since October 27, 2017. In comparison, Apple has risen about 35.0percent in 2018.

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