The online retail giant, Amazon would soon accompany Apple in the trillion dollar company club. Amazon reportedly has a market value of $940 billion at present which is expected to touch $1 trillion soon, claim sources.
For the record, Apple is the first publicly traded company in the United States that reached the trillion dollar mark. In the event that Amazon reaches this mark, it will be the second American company to do so. Sources claim that an increase of 7 percent in Amazon’s stock would catapult its market value to $1 trillion.
According to people familiar with the matter, Amazon and Apple had a cut-throat competition to touch the trillion dollar mark until this month’s start when the i-phone giant attained a 13-digit market valuation.
Preceding Amazon in the trillion dollar race are Google and Microsoft, which have a current market worth of $875 billion and $840 billion respectively, suggest reports.
According to the CNN Money, Amazon has been pulling all the stops to increase its valuation. Its shares are up by approximately 65 percent in 2018. CNN Money also stated that Amazon’s next big gig may be in the healthcare market, following its acquisition of PillPack, an online pharmacy firm.
Brian Olsavsky, Amazon’s Chief Financial Officer, told analysts that the astounding growth in the highest profitability businesses has been a major contributor towards the overall growth in this quarter and the last few quarters. He also credited their advertising activities for the same.
Amazon’s Chief Operating Officer, Jeff Bezos stated that among all its businesses, the consumer technology hardware business has become profoundly successful. Amazon’s Alexa is an AI-enabled digital assistant that has widespread applicability in smart homes, speakers, and other gadgets. Bezos added that the company wants people to use Alexa regardless of where they are.
For the record, Amazon was founded in 1995 as an online bookstore, and has now remarkably grown into an online retail giant with multiple offerings.