Economy

Amazon becomes the 2nd United States company to join the $1 trillion club

Amazon becomes the 2nd United States company to join the $1 trillion club”

Amazon.com Inc on Tuesday briefly joined Apple Inc to become the second $1 trillion (777.79 billion pounds) publicly listed US company after its stock price more than doubled in a year as it grew rapidly in retail and cloud computing.

The online retail giant breached the $1 trillion valuation near 1540 GMT when it's share price hit $2,050.50.

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

Founded in 1994 by Jeff Bezos, who is now the world's richest man, Amazon has grown exponentially from its roots as an online bookseller into a sector-crossing mastodon.

Amazon had $178 billion in revenues a year ago and made $2 billion in profit in its most recent quarter.

Even with Amazon hitting the $1 trillion mark, Ben Barringer, an equity research analyst at Quilter Cheviot, said Amazon still has a long way to go - but say they, one day, could end up bigger then Apple. Apple's stock price fluctuated in sync with Amazon's today, with a peak around 11:30 this morning and a trough about an hour later.

Just 10 months later, on August 30, Amazon shares hit $2,000 for the first time, just $50 per share away from giving the company a $1 trillion market value.

For fiscal 2017, Amazon and its 560,000 employees around the world reported total sales of $177.87 billion, netting it an adjusted profit of $6.15 per share, according to the company's annual report.

Amazon has also formed partnerships with many old-line retailers, selling the Kenmore washing machines traditionally found at Sears and opening stations inside Kohl's stores where people can bring returns and look at Amazon devices.

"The difference between the two is that Amazon has room to grow within its two main businesses".

"This year marks the 20th anniversary of our first shareholder letter, and our core values and approach remain unchanged", Bezos said in his 2017 letter to shareholders in March.

'The company continues to experiment with new products and push into new geographies.



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