Last month, Apple became the first ever U.S. company to hit a USD1 trillion valuation. And now, another company has hit the unprecedented milestone – Amazon. The company’s stock price briefly breached USD2,050.27 per share, the price that was needed to hit the achievement.
The stock is currently down to USD2,039.51 (10:47AM, 9 September, +8 GMT) which puts its valuation slightly below the USD1 trillion mark. The stock is still rallying, and if this upward trend continues, this valuation may not be an uncommon sight.
Last week, Morgan Stanley believes Amazon could exceed a staggering USD1.2 trillion valuation. Amazon’s high margin and stratified revenue streams puts the company in good stead.
Amazon Web Services (AWS), its world-leading cloud computing service is growing healthily. In 2017 alone, AWS contributed USD17.46 billion in annual revenue for the group. The AWS business accounts for over 50 percent of corporate profits.
With all this in place, the outlook for Amazon is positive and profitable. Not bad for company that didn’t make a profit until 2001 after being traded publicly in 1997.
It’s grown plenty since, of course. Its stock price is up 30,000 percent.
Funnily enough, Jeff Bezos, founder and CEO of Amazon, in the early days, once said, “we are not our stock price!”
It’s been an incredible ride. And the best may be yet to come.