The estimated value of the company on Tuesday exceeded the $ 1 trillion mark, although soon the course of its shares rolled back, and Apple remained the only publicly traded American company with a capitalization above $ 1 trillion.
During the morning trades on Tuesday, shares of the company engaged in e-commerce, rose by 1.9%, reaching a maximum of $ 2,050.5 per share. To overcome the psychological limit of $ 1 trillion, the value of an individual share must be at least $ 2,050.27, based on the total of 487,741,189 shares reported in the company’s last quarterly report released in July.
Analysts believe that Amazon’s main growth factor is the company’s ever-expanding portfolio of products and services. Last year, Amazon entered the grocery retail sector, absorbing Whole Foods Markets. The company constantly improves the logistics of delivery of goods, promotes its own hardware products and achieves considerable success in advertising, wishing to challenge Facebook and Google in this sector.
Amazon convinced investors that they could enter new markets and seize them in the same way as they did with retail trade, Gene Munster, an analyst with Loup Ventures, told CNBC.
Amazon took the 1 trillion mark five weeks after Apple reached it in early August, following the publication of its encouraging quarterly report. Amazon reached the capitalization of $ 900 billion only in July, after its largest sale on Prime Day, while Apple took the same bar eight months previously. In other words, Amazon’s capitalization is growing faster.
Despite some pullback, in the last seven days of trading, Amazon’s capitalization increased by $ 72 billion. This week’s gain itself bypasses the market value of more than 80% of companies on the S&P 500 list and is roughly on par with the capitalization of the Starbucks chain.
In July, media noted that Amazon captured half of the US retail trade and at the same time was gaining momentum in other sectors.