Amazon.com, Inc. Becomes Second-Ever To Hit $1 Trillion Market Capital after Apple Inc.
Amazon.com (AMZN) on Tuesday became the second company to touch the lofty market capitalization of $1 trillion, little more than a month after Apple did became the first to reach the watermark. Amazon stock later retreated but remained close to the $1 trillion level.
Amazon stock briefly touched 2,050.50 in late-morning trades, putting it right at a $1 trillion market cap.
Shares of Amazon climbed 1.9% in midday trading on Tuesday, topping the $2,050.27 needed to push the company’s value above $1 trillion. The stock has surged 75% in 2018 and added more than $435 billion to the company’s market capitalization—roughly the size of Walmart Inc., Costco Wholesale Corp. COST +0.34% and Target Corp. TGT 0.82% combined.
Investors have rewarded the Seattle-based company as it demonstrated better financial discipline in recent quarters, reporting record profits because of lucrative businesses such as cloud computing despite aggressively spending on industries from health care to grocery delivery.
“They’ve proven they can make it work,” said Michael Lippert, who manages the Baron Capital BCAP -98.00% Opportunity Fund that counts Amazon as its largest holding. “They’re spending a lot on all these things to build and enforce their competitive advantages.”
Amazon also has opened more than a dozen brick-and-mortar bookstores, and has plans for more cashier-less Amazon Go convenience stores.
Wall Street has been eagerly cheering Amazon to the top lately, with Brian Nowak of Morgan Stanley slapping a $2,500 price target on the stock just last week. Last quarter, the e-commerce and cloud computing behemoth reported a 39% rise in revenues.
Amazon.com, Inc. shares were trading at $2,042.01 per share on Tuesday afternoon, up $29.30 (+1.46%). Year-to-date, AMZN has gained 74.61%, versus a 9.51% rise in the benchmark S&P 500 index during the same period.
AMZN currently has a StockNews.com POWR Rating of A (Strong Buy), and is ranked #1 of 53 stocks in the Internet category.