Amazon has joined an extremely exclusive club of two publicly traded US companies that have reached the $1 trillion mark in market value.
As reported by CNBC, Amazon hit this market cap Tuesday morning after shares rose by almost two percent, making them worth $2,050.50. Because the outstanding share count was reportedly 487,741,189 shares, the math added up to the overall market value hitting that magical trabeculae digit number.
According to CNBC, analysts are citing an “ever-diversifying portfolio” from Amazon as an explanation for what drove the stock’s value upwards. A growth in Amazon Web Services is also noted as a major factor in the company’s recent success. At the beginning of 2018, the company was worth just $580 billion. In the second quarter, the company’s net income ballooned to $2.5 billion, compared to $197 million in the second quarter of 2017.
Though this is a major milestone for the company to hit, Apple managed to reach it a little over a month ago. Still, both US giants continue to grow in value and size. Apple took almost 38 years as a public company to achieve the trillion dollar milestone, while Amazon got there in 21 years. While Apple’s iPhone and other devices remain popular and its revenues are growing, it is not keeping up with Amazon’s enormous sales growth.