11.09.2018 Amazon becomes world’s second company to reach stock market value of $1 trilion

11.09.2018 Amazon becomes world’s second company to reach stock market value of $1 trilion

Amazon has become the second company to be valued by Wall Street at $1 trillionjust a few weeks after Apple hit the same milestone.

Its shares hit the $2050.2677 level to give its stock a value of $1 trillion.

Crossing the $1trillion threshold marks the latest chapter in an astonishing story of growth for the company, founded by businessman Jeff Bezos in Seattle in 1994. Less than 25 years later, Amazon has garnered a major presence in everything from retail, to groceries, to video streaming, helping it rack up revenues of $178bn (£139bn) last year.

Amazon’s seismic increase in value in recent years has made its founder Jeff Bezos the world’s richest person. Mr Bezos’s net wealth currently stands at $166bn, according to Bloomberg, making him worth $68bn more than Microsoft co-founder Bill Gates.

Amazon’s shares have more than doubled in the last year (growing by 107pc) as its online shopping empire has boomed along with its less-well-known cloud computing division, Amazon Web Services (AWS). Much of Amazon’s increase in value over the last few years has been attributed to AWS, which allows other companies to “rent” computing power and storage from the company.

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.

‘Amazon has now become the second company to reach a trillion dollar valuation, following Apple in August this year,’ he said.

‘The difference between the two is that Amazon has room to grow within its two main businesses.’

Apple took almost 38 years as a public company to achieve the trillion dollar milestone, while Amazon got there in 21 years.

Amazon had been vying with Apple to reach the landmark $1trillion figure for months but lost out when stock markets responded favourably to Apple’s financial results last month.