Published: Wed, September 05, 2018
Finance | By Cynthia Curry

Amazon Becomes Second Company To Hit $1 Trillion After Apple

Amazon Becomes Second Company To Hit $1 Trillion After Apple

Amazon crossed the $2,000 threshold for the first time on August 30 after doubling its price in just 10 months. Amazon had $178 billion in revenues a year ago and made $2 billion in profit in its most recent quarter.

Amazon - founded as an online book-retailer in Chief Executive Jeff Bezos' garage in 1994 - started trading on May 15, 1997 at $1.50 on a split-adjusted basis.

The company's stock gained 2 percent on Tuesday, hitting $2,050.27 per share.

Amazon's financial and business successes even pushed the founder and CEO, Jeff Bezos, right to the top of Forbes' billionaires list this year.

For context, the entire U.S. stock market - the sum of all publicly traded American companies including Amazon - hit $30 trillion back in January.

Deputy shoots man who fired gun over sold-out Ice Cube concert
There was also reportedly a concert being held at the Del Mar fairgrounds tonight, but its unclear if the shooting occurred there. The San Diego County Sheriff's Department said a man fired his gun near the race track at about 7pm and a deputy returned fire.

GlobalData Retail managing director Neil Saunders called Amazon's valuation achievement "extraordinary" and considered it a sign of the company's potential. For added reference, the company's stock reached $1,000 in October of 2017, and broke $100 in October of 2009. The share price has since dropped down, so the company was only valued at $1 trillion for a brief few minutes. "Now that it has several high-margin revenue streams, we're seeing those doubts subside". The riches have largely come through his ownership of 16.3% of Amazon's outstanding stock.

Other big companies - including industrial giants that have been around for more than a century, such as Boeing (market cap $207 billion), 3M ($119 billion) and General Motors ($55 billion) - are worth far less than the high-flying tech companies because their prospects for earnings growth are nowhere near as strong.

Amazon saw its quarterly profit soar past $2 billion for the first time earlier this year as the online shopping, cloud computing and advertising businesses all kept growing.

'The company continues to experiment with new products and push into new geographies.

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