Amazon becomes second trillion-dollar company in U.S.

Daniel Fowler
September 5, 2018

Amazon has briefly become the second US-listed firm to have a market value of more than $1 trillion (£779bn).

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.

The company's market cap hit $1 trillion just a few moments ago after its share price hit $2050.50. Amazon Web Services, for instance, a unit that provides hosting and cloud computing for other businesses, brought in $20 billion of revenue in 2017.

For example, Amazon's lucrative cloud computing business is built on technology infrastructure that the company needed to run its own operations.

Amazon, founded by Jeff Bezos as an online bookseller in 1994, has grown rapidly into one of the country's largest and most influential companies.

Analysts said the success of the company's cloud business, Amazon Web Services, and rapidly-growing advertising arm have helped reassure investors who have long anxious about Amazon's profitability.

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

Bezos' riches have largely come through his ownership of 16.3% of Amazon's outstanding stock. It has held above that level since October 27, 2017.

"Amazon is really only just getting started".

Amazon shareholders have already had a extraordinarily good year.

Amazon retreated slightly after hitting the milestone, and near 1545, it was up 1.3 percent to $2,038.71. In comparison, Apple has risen about34.7 percent year to date.

The founder and chief executive also avoided scandals or other distractions, keeping revenue and costs close enough to manage and easing into "adjacent markets" that play into Amazon strengths or interests, according to Enderle.

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