Amazon market cap crosses half a trillion

July 27, 2017 08:38
Amazon shares have gained 40 percent in year to date amid a rally in the tech sector. Photo: Bloomberg's market capitalization crossed half a trillion dollars on Wednesday as the e-commerce giant's shares closed above the US$1,050 level in New York trading, hitting a new record.

The market value climbed to US$503.66 billion as the company prepares to release its quarterly earnings report after the closing bell on Thursday.

Amazon is now valued at more than double the US$240 billion market cap of Wal-Mart Stores, the world’s largest retailer by revenue, the Wall Street Journal noted. 

This year is shaping up to be one in which investors bet heavily that a few technology giants will be the blue-chip companies of the future.

Amazon, the fourth largest S&P 500 company by market cap, is up 40 percent, in year to date, while Microsoft, the third largest, is up 19 percent.

Google parent Alphabet, the second largest, is up 21 percent, while Apple, the biggest, is up 33 percent, according to the Journal.

Amazon saw its shares gain more momentum after June 16, when the company announced a US$13.7 billion acquisition deal for Whole Foods Market Inc.

The deal, if completed, will make Amazon a heavyweight in the grocery business, a major consumer segment where it has so far struggled to gain a foothold, the Journal noted.

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