Amazon becomes world’s second company to reach $1 trillion market value
Amazon became the second company in the world to hit $1 trillion in stock market value on Tuesday when it’s share price reached $2,050.50. The Amazon landmark comes after Apple hit the $1 trillion level in early August.
However, it took Amazon far fewer trading days to get to the $1 trillion market value compared to Apple. Amazon’s market cap jumped from $600 billion to $1 trillion in a mere 165 trading days, according to the Wall Street Journal. By comparison, Apple rose from a $900 billion valuation to $1 trillion in 183 trading sessions.
A company’s stock market value is calculated by multiplying its number of shares outstanding with the price at which its shares are currently being traded in the stock market.
Amazon started as an online bookseller in 1994, but the company has greatly expanded and diversified since. Today, Amazon is one of the world’s largest companies, having successfully ventured into health care, advertising and cloud computing.
Amazon’s astounding growth over the past two-and-a-half decades has made its founder and chief executive, Jeff Bezos, the richest person in the world, with the 54-year-old worth more than $166 billion, according to Bloomberg’s Billionaires Index. Bezos, who owns 16.3% of Amazon’s outstanding shares, is currently about $70 billion richer than the second-placed Bill Gates on the index.
Photo credit: Gus Ruelas / Reuters