On Wednesday, for the first time in 21 years of existence, the market value Amazon.com reached a value of 900 billion dollars. Thus, Amazon has become the most expensive public company, threatening to displace Apple, which is considered the most popular on wall street, reports Reuters.
Since then, as Jeff Bezos founded the online bookstore in his garage in 1994, Amazon survived the dot-com crisis, expanded the range of retail trade and has changed the idea of buyers to purchase goods. In other words, there was a natural selection and solid brick shops have faded into the background.
After the announcement Wednesday during the annual Prime Day sales has sold goods for more than $ 100 million, the company’s shares reached 1,858 thousand dollars per unit, raising the market value of Amazon to 902 billion. Later, the trade was down 0.16% on the session.
In 2018, the value of Amazon shares rose more than 57%, so the increase is over 123 000% since then, as the paper was placed on the NASDAQ in 1997. An investor who has bought 1 share of Amazon for $ 18 in the IPO, at the moment, can get more than 22,200 thousands of dollars, including three stock split in the 1990-ies.
Amazon, streaming Netflix and a small group of influential tech companies keep wall street in recent years and are key components in the portfolios of investment managers.
In 2011, Apple shifted from the pedestal of the American company Exxon Mobil has the largest market value at that time. Shares of the company from Silicon valley grew by 12% in 2018, thereby, its value in the market reached 935 billion.
Thomson Reuters Datastream
The calculations of the market capitalization of Apple and Amazon based on the number of shares in circulation, for which information presented in the March report. Over the past year, Amazon has increased the number of shares by more than 1 million for the quarter, and if this figure will continue to rise in June, the company’s value on the stock market will exceed 900 billion dollars.
Amazon will report on the results on 26 July, Apple, which has reduced the number of shares by redemption, on July 31.
After Amazon expanded its product range by the acquisition of the brand, Whole Foods Market last year, and as soon as more IT companies move their units to the cloud, the amount of income received from a recent trade exceeded expectations in 111 times, compared to more profitable but slow-growing Apple 15 times.
Amazon shifted to Microsoft Corp as the American company that occupies the third position in terms of market capitalization in February. Since then, Microsoft has overtaken Google Alphabet.
Thomson Reuters Datastream