Amazon closes on Apple, wants entry into the $1 trillion club
Ecommerce titan Amazon, a dominant force in numerous areas (think video streaming, online retail, and cloud computing… and that’s just for starters), is worth around $940 billion. That’s an all-time high for the company. So far this year, it’s been one of Ecommerce Fund’s best performers, returning almost 65% in just eight and a half months. Another 7% or so, and the company gains entry into the business world’s newest and most exclusive club: the $1 trillion market cap club.
Amazon’s share price is on an incredible trajectory in 2018
SOURCE: Yahoo Finance
So far, only one company in history has achieved a market cap of $1 trillion. That’s Apple, which jumped the hurdle earlier this year. However, if Apple is the first mover, and Amazon is likely to be the second, there are a number of other companies waiting in the wings that look as though they could join. Alphabet, for example, is worth around $875 million. Microsoft is worth almost $840 million. China’s three dominant internet companies (Baidu, Tencent and Alibaba) all hover around the $500 billion mark, as does embattled social media giant Facebook. The next few years could be busy at the $1 trillion club.
A related question is whether or not Amazon – right now, the most likely second entrant to the club – could advance past Apple. Analysts, who see the former company’s share price surging by a further 32% during the remainder of the year, are divided. However, one voice that argues for Amazon’s outperformance is James McQuivey of Forrester Research. His company conducted a poll of consumers’ trust in various companies in a recent survey. The result? Amazon is deemed to be far more trustworthy than Apple. That doesn’t prove anything – but the implications are pretty clear. And they bode very well for Amazon.
Dominion holds Amazon in its Global Trends Ecommerce Fund.
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