Menu
Amazon leading race to $1 trillion market cap

Amazon leading race to $1 trillion market cap

Shares up 2.69 per cent for a market cap of $768 billion while Alphabet loses 0.39 per cent, trimming its market value to $762 billion

Amazon.com became the second most valuable publicly listed U.S. company on Tuesday, surpassing Google parent Alphabet for the first time.

Amazon shares finished up 2.69 percent at $1,586.51, for a market capitalization of $768 billion, underscoring Wall Street's confidence in its relentless expansion into cloud computing, groceries and other new businesses.

Alphabet lost 0.39 percent, trimming its stock market value to $762 billion, as Wall Street fretted about regulatory fallout following revelations that a political consulting firm had improperly obtained personal data on 50 million Facebook users.

Together, Alphabet and Facebook dominate online advertising. They have previously faced government criticism for how they employ their user data.

Amazon's stock has surged 81 percent over the past year, through Monday, bolstered by scorchingly fast revenue growth as more shopping moves online and businesses shift their computing operations to the cloud, where Amazon Web Services leads the market.

"They're using their cash flow to develop new businesses," said Tim Ghriskey, chief investment strategist at Inverness Counsel in New York. "They could have Apple in their sights at some point."

Seattle-based Amazon dislodged Microsoft as the No. 3 U.S. company by market capitalisation in February. Apple is the world's most valuable publicly listed company, with a market capitalization of $889 billion.

Obviously, past stock gains are not a reliable predictor of future performance, and the surge in Amazon shares in recent years has been exceptional by most standards. But if Amazon's stock were to keep growing on the trajectory seen over the past year, its market capitalization would hit $1 trillion in late August.

Apple's market cap would reach $1 trillion around a month later if its stock price continued to rise at the 25 percent pace seen over the past year.

Alphabet's stock has risen 4 percent so far in 2018 and is up 26 percent in the past year.

The median of analyst price targets for the three companies put Amazon's market capitalization at $823 billion, Alphabet's at $914 billion and Apple's at $989 billion, according to Thomson Reuters data.

Reporting by Noel Randewich; Editing by Leslie Adler.



Follow Us

Join the newsletter!

Or

Sign up to gain exclusive access to email subscriptions, event invitations, competitions, giveaways, and much more.

Membership is free, and your security and privacy remain protected. View our privacy policy before signing up.

Error: Please check your email address.

Tags GoogleamazonAlphabet

Events

Why experience is the new battleground for partners

Join us for an exclusive webinar, in association with Hewlett Packard Enterprise and Technology Services Industry Association (TSIA) and learn about the latest industry insights and how technology services continue to evolve to deliver differentiated value, and how partners can be successful in 2021 and beyond.

Featured

Slideshows

The Kiwi channel gathers for the 2020 Reseller News Women in ICT Awards

The Kiwi channel gathers for the 2020 Reseller News Women in ICT Awards

Hundreds of leaders from the New Zealand IT industry gathered at the Hilton in Auckland on 17 November to celebrate the finest female talent in the Kiwi channel and recognise the winners of the Reseller News Women in ICT Awards (WIICTA) 2020.

The Kiwi channel gathers for the 2020 Reseller News Women in ICT Awards
Leading female front runners honoured at the 2020 Reseller News Women in ICT Awards

Leading female front runners honoured at the 2020 Reseller News Women in ICT Awards

The leading female front runners of the New Zealand ICT industry joined together for the annual Reseller News Women in ICT Awards event at the Hilton in Auckland, during which hundreds of guests celebrated 13 outstanding individuals who won awards, chosen from more than 50 finalists representing over 30 organisations.

Leading female front runners honoured at the 2020 Reseller News Women in ICT Awards
Channel gathers to celebrate the Reseller News Innovation Awards 2020 winners

Channel gathers to celebrate the Reseller News Innovation Awards 2020 winners

More than 500 channel leaders gathered in Auckland on 21 October at the ​Reseller News Innovation Awards ​2020 to celebrate the achievements of the New Zealand technology industry's top partners, start-ups, vendors, distributors and individuals.

Channel gathers to celebrate the Reseller News Innovation Awards 2020 winners
Show Comments