Amazon joins $1 trillion club, on pace to overtake Apple

Roman Schwartz
September 5, 2018

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

Apple crossed the trillion-dollar value threshold a month ago and has remained above it. Amazon became the second United States company at that eye-popping value. That's two $1 trillion businesses that started off in a garage.

The company initially incorporated as "Cadabra" by Jeff Bezos in 1994 and backed with money borrowed from his parents joined Apple as the second United States technology firm to be valued at US$1 trillion on Tuesday.

As of writing, Amazon's market cap is sitting pretty at $994.75 billion; it's nearly a certainty that the company's valuation will top $1 trillion again relatively soon.

Amazon retreated slightly after hitting the milestone, and near 1545, it was up 1.3 percent to $2,038.71.

Amazon becomes second $1 trillion company in US
He said: "Amazon has now become the second company to reach a trillion dollar valuation, following Apple in August this year". Amazon has become the second publicly traded company to be worth $1 trillion U.S. , hot on the heels of iPhone maker Apple.

The Seattle-based company has cemented customer loyalty through smart devices like Alexa and the Prime membership program that offers fast, free shipping as well as music and video streaming perks. In 2007, PetroChina Company's market cap surpassed the $1-trillion mark though the Chinese company's complex structure ensured that most of the shares stayed with the government, The Wall Street Journal reported.

However it was tech giant Apple that was named as the first publicly listed USA company to be valued at $1,000,000,000,000, on 2 August.

Amazon must also guard against the kind of arrogance that can undo companies that come to dominate markets, according to the analyst.

Of course, this news is unlikely to have any significant impact on Amazon as a company or the market at large. Amazon stock has doubled in price over the past year, eclipsing the $2,000 mark on August 30.

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