Amazon was able to be the second ever publicly-listed company in the United States to achieve a $1 trillion market valuation.
Earlier this afternoon, the shares of Amazon briefly passed over the $2,050.27 mark that it needed to break the said milestone, prior to falling back down to $2,035.56.
Last Thursday, it surpassed the $2,000 per share threshold, amid some doubts from Wall Street that set it as the most shorted stock on the market ahead of Tesla.
Last month, Apple, the tech titan, became the achieved the first ever publicly-listed company in the United States to hit the $1 trillion mark after a steady increase in its share price took the 1976 Cupertino firm to the top. Meanwhile, Amazon was founded in 1994. It has had a much faster route to the coveted market cap.
Analysts at Reuters suggest that should it continue at its current pace, it will be a matter of when, not if, that the market valuation of Amazon will surpass that of Apple’s.
Over the previous year, the share price of Amazon has more than doubled after adding over $520bn to its market value. As a comparison, the market cap of Facebook stands at $494bn.
Alphabet, the parent firm of Google, is set to be the next of the so-called FAANG group to be able to hit a trillion-dollar valuation. It is currently sitting at $839.3bn.
Ben Barringer, a Quilter Cheviot analyst, said that the growth of Amazon is far from over. He said that despite being well-established in the United States and the United Kingdom, it also has a “huge scope to grow in the rest of Europe and Asia, especially India.”
In the last quarter, the profits of Amazon smashed the expectations of analyst by providing its investors with an increase in earnings per share amounting to 1,157.5 percent year-on-year.
The revenue for its cloud computing business, Amazon Web Services, takes the largest market share globally above its rivals including Microsoft and Google. It rose by 49 percent to $6.11bn to surpass the estimates of $6bn.
The news takes the approximate 16 percent stake of Jeff Bezos, the founder of Amazon, in in the company to a whopping $160bn.
In 199,7 the e-commerce titan went public on the New York Stock Exchange for only $54m. It had a valuation of $435m. Since then, it has already become one of the most popular retailers in the world. It has been on top of the charts year after year for consumer satisfaction.
However, Amazon has also been the subject of controversy and political scrutiny, including from the likes of Donald Trump, the US President, who slammed the company of resting on the US taxpayer for its postal services.
In the United Kingdom, Amazon was also slammed for its dominance as physical high street retailers are struggling. Recently, Philip Hammond, the British Chancellor, suggested that he was considering to impose a special tax against e-commerce sites that hinder younger stores from growing.
Barringer said that despite these troubles, the investors continue to be long-term believers in the ability of Amazon to grow. Having a proven ability to rise to the challenge of technological innovation and expand into new markets, some analysts “continue to be confident in their positions” for the future success of the company.