Amazon Has Become America's Second $1 Trillion Company
SEATTLE, WA – September 5, 2018
On Tuesday, a rise in the share price of Amazon, which is listed on the Nasdaq stock exchange in the US, briefly took it above the trillion-dollar watermark for the first time.
At peak the value of the stock of the company has reached a point of $2050,5 that there is 1,88% above than the level of closing of the previous auction.
At this moment the market value of Amazon has exceeded $1 trillion – for achievement of this "magic" mark the cost of papers of the company had to be at least $2050,27. However, already in a few minutes stock value was $2035,69.
Amazon has become the second company to be valued by Wall Street at $1tn, a matter of weeks after Apple reached the milestone first.
Crossing the $1tn threshold marks the latest chapter in an astonishing story of growth for the company, founded by businessman Jeff Bezos in Seattle in 1994.
Amazon went public at $18 a share in 1997 – on Tuesday those shares hit $2,050, pushing the value of the whole company over $1tn. Amazon ended the day valued at $995bn, just short of its new record.
But with rapid growth has come fierce criticism over its attitude to tax and workers’ rights.
The company that started life selling books and CDs online has morphed into a behemoth that now makes much of its money from hosting websites such as Airbnb, Netflix and Unilever. Amazon Web Services is currently the frontrunner for a $10bn contract to provide cloud computing for the US Department of Defense.
Alongside cloud services, Amazon has been growing its own content business, developing TV shows and movies. Last year it bought Whole Foods, the grocery chain, for $13bn as Bezos moved to expand Amazon’s food offering. The company now appears to have targeted the healthcare market as its next big opportunity.
Now the Jeff Bezos-led juggernaut is not only the king of the retail e-commerce space, with roughly 50% of the total market, according to eMarketer, it is also a lead player in the public cloud computing business via its Amazon Web Services unit. Additionally, Amazon makes lots of money – and its earnings are expected to keep growing at a fast clip. In the quarter that ended in June, Amazon reported sales of $52.9 billion and a profit of $2.5 billion. The company told Wall Street it expected third-quarter net sales of $54 billion to $57.5 billion, which equates to year-over-year growth of 23 to 31 percent.
In the meantime, the giant bubble continues to inflate. Now there is very difficult situation for the world economy. The specialists call it an “investment crisis.” I.e. there is practically no branch left in the economy in which investors can count on having a stable profit. For this reason the bubble of the technological companies is so actively inflated. And the bigger the bubble, the louder it will burst. We remember this well from the dotcom crisis. But if then it was only small bubbles, now they have reached gigantic proportions. The explosion of such bubbles could wipe out the entire economy.