Amazon Reaches Trillion Dollar Market Value
Amazon has come a long way from being just an online bookstore to one of the biggest companies worldwide. It reached the $ 1 trillion valuation mark on September 4th. However, this was just for a brief moment of time. It is only the second company to touch this mark after Apple did so last month.
In the morning of 4th September, Amazon’s stock traded at $ 2,049, reaching the $ 1 trillion mark. By the time the day had ended, the stock closed at $ 2,039. This brought the capitalisation down to $ 995 billion. Just a few years back in the year 2012, Amazon was worth around $ 100 billion while Apple was worth $ 450 billion. Six years later, Amazon is fast on Apple’s tail.
It is a remarkable feat in terms of how quickly the 24-year-old company has grown, and the boundless opportunities investors have in its future. However, it was not an easy journey. For years, Amazon did not report significant quarterly growth, and it put its revenue back into business. Instead of ensuring a profit driven format, Amazon focused on buying up companies and developing new technologies. This has helped it grow into the giant that it is today. It has gone from on-line retail to physical stores, e-books, home assistants and many more.
Amazon is becoming a household name as the years go buy. It is generating more interest with each passing day and growing its customer base. However, multiple analysts argue that Amazon’s control over each of its services will prevent more trillion dollar companies from ever coming up. The control it holds over consumer pocketbooks and streaming services ensures that no other company or potential challengers can exist in the same paradigm. Thus, this eliminates any threat it has.
However, Amazon will continue to grow and will hit the mark again, this time with a steady upward pace. Earlier this year, Amazon CEO Jeff Bezos also accomplished a financial milestone by crossing Bill Gates to become the richest man in the world.