Amazon has followed Apple's footstep to become the second United States' company to reach $1 trillion mark in stock-market value. The recent trades reflects the online retailer's striking transformation from a mere bookseller into a disruptive organization that has changed how everyone shops online.
The company began Tuesday morning needing just over $14 billion worth of net value to reach the trillion dollars market and as of today (EST), Amazon's total market value officially surpassed $1 trillion. As per a senior index analyst for S&P, both Amazon and Apple make up more than 8 percent of the entire value of the S&P 500, reports CNN Money.
Amazon Inc. was found by Jeff Bezos in July 1994. The tech giant is the largest internet retailer in the world as measured by the entire revenue generation and market capitalization. The company's official website, www.amazon.com, started as an online bookstore and it later diversified to sell and download videos, MP3 streamings, software, apparel, furniture, toys, and others.
Back in 2015, Amazon surpassed Walmart as the most valuable retailer in America by market capitalization. In 2017, the Seattle-based company acquired Whole Foods Market for $13.4 billion, which exponentially increased its presence as a brick-and-mortar retailer.
At the beginning of this year, Amazon was worth just $580 billion. One of the major reasons behind such a growth in the second quarter is because of the success of Amazon Web Services, Amazon's cloud business, as well as the advertising it sells across all of its sites, that also includes the charges it collects from the Prime membership subscriptions.
There are many analysts who believe that Amazon's e-commerce operations will soon account for 5 percent of all retail spending in the United States of America. According to Sky News, an equity research analysts had following things to say,
"The first business is the most well-known - the retail side. The company continues to experiment with new products and push into new geographies. Although it is well established in the US and UK, it has huge scope to grow in the rest of Europe and Asia, especially India. The second side of the business, Amazon Web Services (AWS), is the undisputed leader in the structural shift of IT systems to 'cloud computing'... AWS was the first provider to hit scale in cloud infrastructure and now has run rate revenues of $22bn, with growth that accelerated to 49% over the first half of 2018 compared to the same period a year ago."