Amazon joins $1 trillion club

Amazon.com Inc joined Apple Inc in the $1 trillion club, becoming the second member of the group after its stock price doubled in 15 months. If the online retailer’s share price continues at its recent pace, it will be a matter of when, not if, Amazon’s market valuation eclipses that of iPhone maker Apple, which reached $1 trillion on Aug. 2.

Apple took almost 38 years as a public company to achieve the trillion dollar milestone, while Amazon got there in 21 years. While Apple’s iPhone and other devices remain popular and its revenues are growing, it is not keeping up with Amazon’s blistering sales growth.

Amazon has impressed investors by successfully diversifying its business into virtually every corner of the retail industry, altering how consumers buy products and putting major pressure on many brick-and-mortar stores. It also provides video streaming services and bought upscale supermarket Whole Foods. And its cloud computing services for companies have become a major driver of earnings and revenue.

Amazon currently trades up 74.0 per cent for the year to date. In comparison, Apple has risen about34.7 per cent year to date. Analysts expect Apple’s revenue to jump 14.9 per cent in its fiscal year ending in September, according to Thomson Reuters data, a hefty rise but still far short of Amazon’s expected revenue growth of 32 per cent for 2018.

For Local News and Immediate Delivery, download our Android App