Amazon is SO CLOSE to being the world’s most valuable company
It’s been one heck of a rollercoaster for Ecommerce titan Amazon’s share price this year. The company’s eponymous online store and wider business interests (like cloud computing) have performed admirably. And speculation about further growth and innovation has never been far away: Amazon is cracking groceries with its Whole Foods brand, opening cashier-free ‘stores of the future’ in Amazon Go, moving into the online pharmacy space with massive acquisitions, leading the pack in cloud computing, and more. Unsurprisingly, its share price has soared. And then… un-soared, courtesy of the tech backlash. And then… soared again! (Thanks, Black Friday and Cyber Monday!)
Amazon’s share price has been on a tear over the past five days
Source: Yahoo Finance
Earlier this year, it joined the trillion-dollar club, as its share price passed the mark. Apple beat it there, and neither company would stay above the line for long. Now, the company’s rising fortunes on the market have seen it battle Apple and Microsoft for the glorious title of “world’s most valuable company”. On Monday, it briefly held that spot, as its market cap hit $870 billion. That was more (for a bit) than Microsoft, which dislodged Apple last week (Apple having previously held the position for an incredible 8 years!).
Analysts have been predicting that Amazon could hit number one spot for some time. And the company’s founder and CEO, Jeff Bezos, became the world’s richest man earlier this year.
Investors can look forward to the company hopefully passing competitors once more to take the top spot. But they shouldn’t worry about Mr. Bezos resting on his laurels. Last month, he told employees that Amazon was “not too big to fail” and outlined how the company could extend its success and lifespan: “If we start to focus on ourselves instead of focusing on our customers, that will be the beginning of the end. We have to try and delay that day for as long as possible.”
Dominion holds Amazon in its Global Trends Ecommerce Fund.
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