Amazon hits ‘extraordinary’ $1 trillion valuation
Amazon has joined a very exclusive club.
Amazon's skyrocketing stock surge pushed its market value to above $1 trillion on Tuesday. It is only the second public company in the U.S. to pass that mark — Apple being the first. Amazon stock has risen 75% in 2018.
“To reach a market capitalization of over $1 trillion is impressive,” commented Neil Saunders, managing director of GlobalData Retail. “To do it in a little over 24 years is extraordinary. That Amazon has achieved this demonstrates its dramatic advancement in both the retail and technology sectors, as well as the influence it now wields over large parts of the consumer landscape.”
Amazon stock reached a record high of $2,050.50 per share early Tuesday, briefly driving it past the $2.050.27 it needed to cross the $1 trillion milestone. The price, however, dropped back down in the afternoon. Analysts said that, given the volatile nature of the stock exchange, Amazon will likely fluctuate back and forth beyond the $1 trillion mark in the coming days.
Analysts credited Amazon’s varied portfolio, which continues to grow more diverse, as fueling its stock surge — and future prospects.
“In our view, the valuation also reflects the forward potential of the company,” Saunders said. Despite its size and scale, there is still something young about Amazon. It might be mature in a sector like books and media, but in categories like grocery and home furnishings, Amazon is really only just getting started. … We also believe it will move more heavily into new areas like pharmacy and healthcare.”
Amazon's skyrocketing stock surge pushed its market value to above $1 trillion on Tuesday. It is only the second public company in the U.S. to pass that mark — Apple being the first. Amazon stock has risen 75% in 2018.
“To reach a market capitalization of over $1 trillion is impressive,” commented Neil Saunders, managing director of GlobalData Retail. “To do it in a little over 24 years is extraordinary. That Amazon has achieved this demonstrates its dramatic advancement in both the retail and technology sectors, as well as the influence it now wields over large parts of the consumer landscape.”
Amazon stock reached a record high of $2,050.50 per share early Tuesday, briefly driving it past the $2.050.27 it needed to cross the $1 trillion milestone. The price, however, dropped back down in the afternoon. Analysts said that, given the volatile nature of the stock exchange, Amazon will likely fluctuate back and forth beyond the $1 trillion mark in the coming days.
Analysts credited Amazon’s varied portfolio, which continues to grow more diverse, as fueling its stock surge — and future prospects.
“In our view, the valuation also reflects the forward potential of the company,” Saunders said. Despite its size and scale, there is still something young about Amazon. It might be mature in a sector like books and media, but in categories like grocery and home furnishings, Amazon is really only just getting started. … We also believe it will move more heavily into new areas like pharmacy and healthcare.”