Amazon hits $1 trillion market value on September 4 joining Apple Inc in the $1 trillion club, and becoming the second member of the group after its stock price doubled in 15 months.
Apple took almost 38 years as a public company to achieve the trillion dollar milestone, while Amazon got there in almost half that time, in 21 years. While Apple’s iPhone and other devices remain popular and its revenue is growing, it can’t keep up with Amazon’s blistering sales growth.
Investors are impressed by Amazon’s success which has diversified its business virtually into every corner of the retail industry. It has altered how consumers buy products online putting major pressure on many brick-and-mortar stores.
It also provides video streaming services and bought upscale supermarket Whole Foods. Its cloud computing services for companies have also become a major driver of earnings and revenue.
“Amazon’s a little bit more dynamic than Apple because the iPhone has become more mature. Amazon’s cloud business is an extra growth driver that Apple doesn’t have,” said Daniel Morgan, Portfolio Manager at Synovus Trust in Atlanta, he describes Amazon’s cloud services as its “crown jewel“.
On August 30, Amazon shares hit $2,000 for the first time, just $50 per share away from the company’s projection of reaching $1 trillion market value. Amazon shares were last up 1.1 percent at $2,035.69, pulling back slightly from the milestone level of $2050.2677.
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