Amazon becomes second USA firm to hit trillion-dollar market value

Elizabeth Houston
September 5, 2018

The stock closed at $2,039.51 Tuesday, about $11 short of keeping its valuation above $1 trillion.

It's official: Amazon is the second American company to achieve a valuation of more than $1 trillion.

"It says a lot about Amazon and its ever-increasing dominance of segments of the retailing world as well as the web services business", said Peter Tuz, President Of Chase Investment Counsel In Charlottesville, Virginia.

It is also a major streamer of video content on its Amazon Prime service. But that strategy has paid off in spades, with the company coming to dominate entire industries and quickly gaining on Apple as the most valuable publicly traded company in the world. In the second quarter, AWS booked $6.1 billion in sales (up 49%), and generated an operating income of $1.64 billion (up 79%).

Apple started trading in December 1980 but its stock did not truly start to take flight for another 25 years, spurred by the iPhone, the breakthrough device that left competitors in the dust.

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By October 2009 it had risen to $100 and the stock hit $1,000 for the first time on May 30, 2017.

Its growth has boosted the fortunes of its founder and chief executive officer, Jeff Bezos. It has held above that level since October 27, 2017.

The milestone is another sign of Amazon's swift rise from an online bookseller to a behemoth that sells toilet paper, TVs and just about anything. Multiplied by the current number of shares outstanding - 487,741,189 - that puts the company's book value just over the same symbolic milestone that Apple hit less than one month ago.

Amazon's stock has gained over 70% in 2018, according to CNBC.

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