Amazon at last caught up to Apple this week, becoming valued at $1 trillion in a share price surge.
Following last week’s predictions that it would soon reach the historic milestone, Amazon has at last hit the valuation mark of $1 trillion USD.
Amazon has had a hugely profitable year, making $2.5 billion in the last financial quarter alone, and its share prices have soared 75 percent since the beginning of 2018. Market predictions mostly pegged the massive retailer to be the first company to become worth $1 trillion, but Apple overtook it to break the record last month. Amazon has been catching up quickly, however, and on Tuesday morning its share prices rose to $2,050.49, pushing it over the mark. The prices then decreased to $2,039.51, ending the day below $1 trillion, but history had nonetheless been made: a second company has become worth $1 trillion, ahead of contenders such as Alphabet and Microsoft.
Amazon’s continuing growth is assured, but some commentators warn against investing in a company trading at such extremes. Amazon certainly has a history of making huge losses in order to reap huge profits, a business model that comes with risks despite its substantial rewards.
Are the share price surges and high profit margins of 2018 a temporary peak or a sign of even greater growth ahead? Amazon doesn’t appear to be slowing down any time soon, and it will be interesting to see what effect the company’s rise has on its Australian expansion.
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