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

Featured

Slideshows

Meet the leading customer-centric Microsoft channel partners

Meet the leading customer-centric Microsoft channel partners

Microsoft honoured leading partners across the channel following a year of customer innovation and market growth in New Zealand. The 2018 Microsoft Partner Awards recognised excellence within the context of the end-user, spanning a host of emerging and established providers.

Meet the leading customer-centric Microsoft channel partners
Reseller News launches new-look Awards at 2018 Judges’ Lunch

Reseller News launches new-look Awards at 2018 Judges’ Lunch

Introducing the Reseller News Innovation Awards, launched to the channel at the 2018 Judges’ Lunch in Auckland. With more than 70 judges now part of the voting panel, the new-look awards will reflect the changing dynamics of the channel, recognising excellence across customer value and innovation - spanning start-ups, partners, distributors and vendors.

Reseller News launches new-look Awards at 2018 Judges’ Lunch
Show Comments