WHAT’S BEING CLAIMED:
- Four weeks after Apple hit the $1 trillion market cap, Amazon joined the trillion-dollar club Tuesday.
- Amazon got to the 1 trillion-valuation far more quickly than Apple did because of it offers a diversity of products.
- The stock closed below a trillion but the milestone is remarkable, thanks to Amazon’s cloud business, Amazon Web Services.
Amazon briefly joined Apple on Tuesday to become the second publicly listed U.S. company to hit $1 trillion market cap. The tech and retail company’s stock price more than doubled in 1 year as it grew rapidly in retail and cloud computing.
Apple reached the trillion dollar milestone in 38 years, while Amazon did it in only 21. And Amazon did it a little over a month after Apple crossed the same milestone.
Amazon CEO Jeff Bezos started the company as an online bookstore in 1994 but it was only in 2015 that it has been consistently profitable. The tech giant’s profits have averaged $2 billion in each of the first two quarters of 2018.
With a net worth of more than $150 billion, Bezos became the richest person in modern history. His fortune comes from his Amazon shares.
Amazon is able to diversify its product offerings and is not only known for online shopping but is also opening physical stores. It acquired the Whole Foods grocery franchise last year and runs a lucrative cloud-services business on a vast scale.
Amazon is also entering the health and pharmacy business by acquiring online pharmacy startup PillPack for $1 billion.
According to the latest NPR/Marist survey, 92 percent of online shoppers in the U.S. have purchased something on Amazon. Over 40 percent of them said they order something on Amazon once a month or more often. The poll result also showed that when people shop online, they’re most likely to start on Amazon.
Sixty-seven percent of American online shoppers say they have “quite a lot” or “a great deal” of trust in Amazon to protect their privacy and personal information, according to the survey. But in general, the majority of the responders say they had little to no such confidence in online retailers.
Amazon Prime has over 100 million subscribers from around the world.
By Tuesday afternoon, Amazon’s stock was trading at $2,030 per share. That’s up less than 1 percent, putting its valuation at $990 billion.