“Amazon.com Inc on Tuesday joined Apple Inc in the $1 trillion club, becoming the second member of the group after its stock price doubled in 15 months,” Sinéad Carew reports for Reuters. “If the online retailer’s share price continues at its recent pace, it will be a matter of when, not if, Amazon’s market valuation eclipses that of iPhone maker Apple, which reached $1 trillion on Aug. 2.”
“‘Amazon’s a little bit more dynamic than Apple because the iPhone has become more mature. Amazon’s cloud business is an extra growth driver that Apple doesn’t have,’ said Daniel Morgan, portfolio manager at Synovus Trust in Atlanta, Georgia who describes Amazon’s cloud services as its ‘crown jewel,'” Carew reports. “In the second quarter the unit accounted for 55 percent of Amazon’s operating income and 20 percent of total revenue, according to Morgan.”
“Amazon – founded as an online book-retailer in Chief Executive Jeff Bezos’ garage in 1994 – started trading on May 15 1997 at $1.50 on a split-adjusted basis,” Carew reports. “Amazon shares were last up 1.1 percent at $2,035.69, pulling back slightly from the milestone level of $2050.2677.”
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MacDailyNews Take: Amazon couldn’t quite hold the trillion-dollar mark and is currently worth $993.515 billion. Currently, Apple is the sole member of the $1 trillion club, valued at $1.103 trillion.