Last week Amazon surpassed Google’s parent Company, Alphabet, and became the second most valuable company in the US and arguably, the world.
In the past 12 months, Amazon has had a market growth of 85 percent, with 35 percent of that in this year alone. Last Tuesday, as their shares continued to grow, Amazon’s market value reached $768 billion and individual shares a whopping $1,586.51 a pop. Amazon is now the second most valuable, publicly traded company in the US.
Why the astronomical growth in the last 12 months, let alone three of this month? Experts believe their growing and profitable cloud computing business has meant investors are stockpiling into the business; literally. Unlike its stock competitors, Apple and Google, Amazon does not rely on a single business for its sales. This vastly spreads their investment interest and potential. As quoted in Bloomberg, James Cakmak an analyst at Monness Crespi Hardt & CO, “at the end of the day they’re [Apple and Google] a one-trick pony,” reaffirming Amazon’s influence and reason for success.
Amazon’s 35 percent growth this year is even more impressive when you find out Alphabet’s growth to date has been four percent. Apple, still holds the top spot with a market value of $889 billion; but if this year’s growth is anything to go by, Amazon is swooping in in leaps and bounds.
What makes this growth even more impressive is that Amazon is not new to the game. It recognises the evolving world around it and continues to make adjustments and advancements that keep it relevant and a necessity in people’s lives.
Jeff Bezos, Amazon’s Founder and CEO, was this year named Forbes richest billionaire, making him the richest man in the world with a US$112 billion fortune. This makes him the first and only ‘centi-billionare’ whose fortunes exceeds the $100 billion mark.
It seems like a year of firsts for Amazon with records being smashed and their growth showing no sign of slowing down anytime soon.