Amazon.com on Tuesday moved ahead of Google parent Alphabet in market capitalization for the first time, becoming the second-most valuable publicly listed US company after Apple.
Shares of the world’s top e-commerce firm closed up 2.7 percent at US$1,586.51 in New York trading, giving it a market value of US$768 billion and putting it past Alphabet, Reuters reports.
Alphabet shares lost 0.39 percent on the day, making the company end up with US$762 billion in market valuation.
Following the Tuesday performance, Amazon now only trails Apple as the world’s most valuable publicly listed company.
Apple’s market capitalization currently stands at US$889 billion.
Amazon’s stock has surged 81 percent over the past year, through Monday, as investors cheered the company’s relentless expansion into cloud computing, groceries and other new businesses.
Amazon Web Services leads the market in cloud services, helping the parent firm post scorching revenue growth.
Meanwhile, the e-commerce giant is also boosting its online retail business by focusing on segments such as grocery delivery.
“They’re using their cash flow to develop new businesses,” Tim Ghriskey, chief investment strategist at Inverness Counsel in New York, told Reuters. “They could have Apple in their sights at some point.”
In February, Amazon dislodged Microsoft as the No. 3 US company by market capitalization.
Past stock gains are not a reliable predictor of future performance, and the surge in Amazon shares in recent years has been exceptional by most standards.
But if Amazon’s stock were to keep growing on the trajectory seen over the past year, its market capitalization would hit US$1 trillion in late August, the report noted.
Apple’s market cap would reach US$1 trillion around a month later if its stock price continued to rise at the 25 percent pace seen over the past year.
– Contact us at [email protected]