Amazon is the world’s second largest company worth $1 trillion

Amazon is the world’s second largest company worth $1 trillion

For a short time, the question was which company would be worth $1 trillion more: Apple or Amazon. Last month, that race was settled in Apple’s favour. Yesterday, Amazon also crossed the border. This was due to the fact that the value of the company’s shares was more than USD 2,050.50. The company’s share price was higher than USD 2,050.50. The company’s share price was lower than the price of the shares.

This made Amazon the second company ever to reach a value of more than 1 trillion dollars. However, CEO Jeff Bezos did not enjoy the success for long, currently the value of shares is 2,039 dollars, bringing the total value of Amazon to 994 billion dollars. Things went differently at Apple, which is now worth $1.1 trillion.

Enormous growth

Nevertheless, Amazon is doing very well. Press agency Bloomberg states that Amazon has been growing less rapidly than Netflix and Align Technology in terms of percentage over the past twelve months. The latter company produces devices for the medical industry, a market that is only growing.

The fact that Amazon’s value is growing rapidly is due to the expansion into more and more new markets and good performance in those markets. One of the main growth markets is Amazon Web Services, the company’s cloud service that grew 49 percent last quarter to a total value of $6.11 billion.

Major expansion

Amazon Web Services is doing very well, which meant that Amazon’s profit last quarter amounted to 3 billion dollars. This is a great achievement, because the e-commerce from which Amazon traditionally generated most of its turnover has only narrow margins. The figures it books are also the result of relatively low salaries for staff in the warehouses and very strict requirements for suppliers.

Amazon is expanding a lot more: last year it took over Whole Foods Market for 13.7 billion dollars. This is a supermarket chain with which Amazon now also sells food. It also spent $1 billion on PillPack, an online pharmacy. Amazon is also expanding geographically; last month, for example, it acquired the Indian consumer portal Tapzo for USD 40 million.

This news article was automatically translated from Dutch to give a head start. All news articles after September 1, 2019 are written in native English and NOT translated. All our background stories are written in native English as well. For more information read our launch article.