Amazon Joins The Trillion Dollar Club, Tipped To Surpass Apple Soon
Amazon has joined Apple in the Trillion dollar club with their shares hitting US$2,050.50 per share.
The company’s stock price rose 1.7 per cent in trading overnight to take them over the line and between both Apple and Amazon, they now make up more than 8 per cent of the entire value of the S&P 500.
The company has gone from being an online marketplace to a movie and television producer, e-book publisher, and cloud storage oporator. Ironically it’s their web services business that generates the most profits.
Amazon’s success has also made its CEO, Jeff Bezos, the richest person in the world – something progressive Senator Bernie Sanders took shots at during a Labour Day event on Monday.
Analysts are tipping that if the online retailer’s share price continues at its recent pace, it will be a matter of when, not if, Amazon’s market valuation eclipses that of iPhone maker Apple, which reached $1 trillion on Aug. 2.
Apple took almost 38 years as a public company to achieve the trillion dollar milestone, while Amazon got there in 21 years. While Apple’s iPhone and other devices remain popular and its revenues are growing, it is not keeping up with Amazon’s blistering sales growth.
Amazon has impressed investors by successfully diversifying its business into virtually every corner of the retail industry, altering how consumers buy products and putting major pressure on many brick-and-mortar stores.