E-commerce giant Amazon's market cap reached $1 trillion on Tuesday, making the firm the second US company to hit that mark after iPhone maker Apple did just last month. Amazon, however, achieved the milestone in just 21 years as a publicly traded firm as opposed to the 38 years it took Apple.
CNBC reported that shares of the online retailer rose nearly 2 percent to a staggering $2,050.50 in morning trading, hitting the $1 trillion mark by over $0.23. What this means is that Amazon and Apple now make up more than 8 percent of the S&P 500's value, senior index analyst for S&P Howard Silverblatt toldCNN.
Upgrading, expanding and diversifying
CNN also revealed that Amazon's price-to-earnings ratio is now around 180, a significantly higher value than the standard 20 to 40 of most general online retailers. Amazon has been constantly upgrading and expanding their delivery options and services.
Just last week the e-commerce titan added yet more areas to its Prime Now grocery services. “We’ve been delighted with the customer response to delivery in as little as an hour through Prime Now, and we’re excited to bring the service to our customers in Columbus, Dayton, Portland, Greater Washington D.C. and even more neighborhoods in New York City,” said in a statement Christina Minardi, Whole Foods Market Executive Vice President of Operations.
But that's just the tip of the iceberg. Amazon has actively been diversifying into practically every conceivable sector with nearly all companies fearing they might soon be eclipsed by the ever-mounting competition.
Part of those worries come from Amazon's much-discussed in-depth knowledge of its consumer base and they may be very well-founded. Reutersreported that if the retailer's share gains continue at this rate, it would only be a matter of time before its stock market valuation overtakes that of Apple's.
Obliterating all competition?
The Washington Post pointed out that it took the firm "just 165 trading days to grow from $600 billion in January to $1 trillion." Meanwhile, the puns have already begun.
"Apple walked to $1 trillion. Amazon sprinted there," read Los Angeles Times' headline on today's news. "Move over Apple," saidFox Business News' host Nicole Petallides.
If Amazon obliterates Apple, could the company really be heading for world domination next? Possibly, however, it may be wise to remember that even Rome eventually did fall.
In fact, many great empires throughout time have risen and yet still disappeared in the end. Analysis has shown that although all rises are similar, the problems that lead to descents are much more complex and diversified.
Indeed, in business, as well as in empires, the complications that herald demise are often hard to predict. For now, however, Amazon seems to be sailing smoothly, riding one wave of success to another.