Amazon becomes world's second $1tn company

Gladys Abbott
September 4, 2018

Following its new peak, Amazon's stock immediately began to tumble, coming to rest at $2,024.67 around 12:30 p.m. before regaining some value and stabilizing at about $2,040 per share. Most notable was the speed with which Amazon hit the milestone, with its shares having more than tripled in the past three years.

Amazon's $1 trillion has been coming for weeks.

He said: "Amazon has now become the second company to reach a trillion dollar valuation, following Apple in August this year".

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

Shares of Amazon's stock rose 1.9 percent Tuesday morning to $2,050.50 - 23 cents above the amount needed to bump Amazon over the $1 trillion line. That happened barely a month after Apple crossed that threshold.

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It has revolutionised how people shop online and is the world's dominant internet retailer.

In the second quarter the unit accounted for 55 percent of Amazon's operating income and 20 percent of total revenue, according to Morgan. "Now that it has several high-margin revenue streams, we're seeing those doubts subside". Amazon Web Services provides cloud computing services to companies and government, and its advertising division makes billions by selling ads to companies that want their products to show up when shoppers search on the site.

Such astronomical growth from a small, Seattle book seller to one of the world's biggest companies, has made its founder and chief executive, Jeff Bezos, easily the richest person in the world.

Amazon shareholders have already had a extraordinarily good year.

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