Markets

Amazon Becomes Second U.S. Company to Hit $1 Trillion Market Cap

Amazon Becomes Second U.S. Company to Hit $1 Trillion Market Cap

Market watchers have been expecting both Amazon and Apple to eventually have valuations topping $1 trillion.

Shares in the e-commerce giant rose almost 2% to a high of $2,050.50 in morning trade before slipping back.

The development comes just a little over a month after technology giant Apple reached the $1 trillion mark.

Ben Barringer, an equity research analyst at Quilter Cheviot, said Amazon still has a long to way go, which means it could end up bigger then Apple. Bezos, Amazon, and the Bezos owned Washington Post have become frequent targets of criticism from President Donald Trump.

The Seattle-based company has cemented customer loyalty through its Echo voice devices and the Prime membership programme that offers fast, free shipping as well as music and video streaming perks. Amazon had $178 billion in revenues a year ago and made $2 billion in profit in its most recent quarter.

Amazon's share prices slightly receded after hitting the milestone, trading for $2036.95 at the time of writing.

Now, Amazon has followed in Apple's footsteps - the online retail giant successfully snagged the trillion-dollar company title for itself today, albeit temporarily.

According to Deadline, Amazon shares have risen more than one percent today to $2,038, "just shy of the $2,050 level that conferred the $1 trillion valuation". The share price has since dropped down, so the company was only valued at $1 trillion for a brief few minutes.

Here's the breakdown of how Morgan Stanley - one of the stock's most bullish sell-side shops - sees Amazon's five main units in terms of value.