Amazon's market value tops $1 trillion

Randal Sanchez
September 5, 2018

Amazon has revolutionized how people shop online and is the world's dominant internet retailer.

Of course, with only two companies ever having reached the $1 trillion mark, there's bound to be comparisons.

Amazon shares, up 1.1 per cent at $2,035.68 last night, have soared by 75 per cent this year.

The milestone comes one month after Apple first passed the $1 trillion threshold on August 2.

A major contributor to the company's massive profits has been its cloud business, Amazon Web Services (AWS).

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For context, the entire U.S. stock market - the sum of all publicly traded American companies including Amazon - hit $30 trillion back in January.

Like most tech billionaires, Jeff Bezos's net worth rises and falls based on his company's performance in the stock market. "Amazon's cloud business is an extra growth driver that Apple doesn't have", said Daniel Morgan, portfolio manager at Synovus Trust in Atlanta, Georgia who describes Amazon's cloud services as its "crown jewel".

Amazon - founded as an online book-retailer in Chief Executive Jeff Bezos' garage in 1994 - started trading on May 15, 1997 at $1.50 on a split-adjusted basis. It has held above that level since October 27, 2017.

Amazon reported almost $US53b in sales in the three months ended in June, with record quarterly profit of $US2.5b. On Tuesday morning, the stock climbed enough to push the company's valuation pass the $1 trillion mark, although it dropped back slightly after that.

Amazon now trades up 74.0 per cent for the year to date. The company's stock has surged more than 70 percent since January, outperforming Apple, which has gained more than 30 percent.

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