Amazon becomes second USA firm to hit trillion-dollar market value

Lindsey Wasson  Reuters

Lindsey Wasson Reuters

Amazon has revolutionised how people shop online and is the world's dominant Internet retailer.

It's official: Amazon is the second United States company to achieve a valuation of more than $1 trillion.

Amazon's market valuation in recent weeks pulled ahead of two other tech giants - Google's parent company, Alphabet, and Microsoft - to hit the $1 trillion mark.

The company's success put its founder and chief executive Jeff Bezos top of the Forbes billionaires list this year.

Its stock surged during morning trading on the Nasdaq, reaching the milestone when its share price hit $2,050.50 per share.

If the online retailer's shares keep up their recent pace, it would be a matter of when, not if, Amazon's stock market valuation eclipses that of iPhone maker Apple, which reached $1 trillion on August 2.

For fiscal 2017, Amazon and its 560,000 employees around the world reported total sales of $177.87 billion, netting it an adjusted profit of $6.15 per share, according to the company's annual report. It first reached $100 on October 23, 2009.

Ben Barringer, an equity research analyst at Quilter Cheviot, said Amazon still has a long to way go, which means it could end up bigger then Apple.

This growth was made clear when Apple managed to become the first US-based trillion-dollar company earlier this year.

Of course, this news is unlikely to have any significant impact on Amazon as a company or the market at large.

"While the share price has doubled over the past year, we are long-term believers in the case for the company, and continue to be confident in our positions".

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