WHAT’S BEING CLAIMED:
- Online retail heavyweight Amazon.com’s stock market capitalization topped $900 billion on Wednesday, the very first time in 21 years since it was listed on NASDAQ in 1997.
- Amazon’s Prime Day sale accumulated over $100 million, raising the company’s stock price to $1,858.88 per share.
- Amazon is rapidly gaining ground on tech giant Apple in a race to become the first trillion dollar company.
Due to the success of their annual Prime Day Sale which generated more than $100 million worth of sales, Amazon’s stock price jumped to $1,858.88 per share, giving the company a stock market value of $902 billion. It later slid down to 0.16 percent at the end of the day. This valuation makes Amazon a very close rival of Apple, whose 2018 stock market is valued at $935 billion. The race is on now for the two techno companies to become the world’s first trillion dollar company.
In 2018 alone, Amazon stock has risen by more than 57 percent with its stock price reaching 123,000 percent. Apple stock, on the other hand, has risen to 12 percent. It has replaced Exxon Mobile (XOM.N) in late 2011 and has been the world’s most valuable corporation since then.
However, with Amazon’s astounding growth and expansions into grocery retail with more businesses using its cloud services, Apple is getting some real competition. Moreover, Amazon currently trades at 111 times its expected earnings compared to Apple’s 15 times. Amazon will report their earnings on July 26 while Apple, which has been buying back shares thus reducing its share count, will report its results on July 31.
Founded in a garage in 1994 by Jeff Bezos, Amazon has indeed come a long way. From an online selling bookstore, it has grown into the largest Internet retailer in the world. It managed to overcome obstacles like the dot-com bubble and modified ways on consumers’ product buying, thereby starting a struggle between online and traditional shopping. Amazon, Netflix and a handful of other companies remain to be the key investments of manager’s portfolios.
In February, Amazon unseated Microsoft Corp as the third-ranked U.S. company based on market valuation. Since then, Microsoft has been overtaken by Google-owner Alphabet.