As the tech giants, Apple notched up to the $1 trillion evaluation in August, it was soon followed by the eCommerce biggie Amazon coming only second to reach the benchmark this Tuesday. Apple had reached the $900 billion mark last year and Amazon took nearly 8 more months, reaching the mark only in July this year, during its Prime Day.
There have been several developments in the front of Amazon’s business policies that has actually helped it in reaching this place. It has ventured out into the grocery sector by purchasing Whole Foods Markets, that claimed itself to be America’s healthiest online grocery store. They have also pushed their advertising to manifold levels and is now a tough competitor to the likes of Facebook and Google.
Analysts have shown positive criticism to Amazon’s rise in the brand game.
Squawk Alley, CNBC’s tech news provider, uploaded a byte of Loup Venture’s Gene Munster, who claims that “They have given investors confidence that they can go and disrupt markets just like they’ve done with retail”. The company had share count of 487,741,189 after the quarterly report in July and needed a price of $2,050.27 to hit the coveted $1 trillion cap.
The morning trading captured an upward scaling by 2 percent to $2,050.50 in the morning which stood at $2,035.64 by Tuesday evening. 2018 has thus been exceptional for Amazon where it has marked the stocks up by 70 percent over its last, almost doubling up in the last 12 months, making the overall market figures look emaciated with S&P 500 index increasing only 8 percent in 2018 and 16 percent in the last one year.
What Capital Markets Analyst of RBC , Mark Mahaney, believes is that the company growth could mostly be attributed to its new and improved venture into the Cloud based services called Amazon Web Services that might have brought this rapid improvement over its already existing success in the online retailing. He said “the ticker changed from AMZN to AWS (Amazon Web Services).
Thus this massive growth of over 50 percent has brought a new feather in the cap of Amazon and hopefully, it can take down other giants in America with further innovation in its Client based services.