Amazon has become the second company in history to reach a trillion dollar valuation – less than a month after Apple achieved the same feat.
The e-commerce giant’s shares hit $2050 on Wednesday night UK-time, briefly driving the company’s market cap above the ten figure mark.
At the time of publication, the company is five billion dollars short of a trillion dollar valuation, but its value is expected to surpass the figure again shortly.
The news comes after Amazon reported record quarterly profits in June driven by rising online sales and a growing appetite for its cloud services. Total sales rose by 39 per cent to $53bn.
The valuation is the ultimate vindication of CEO Jeff Bezos’s commitment to running the company at a loss for several years, and investors’ willingness to let him do so.
“To reach a market capitalisation of over $ 1trillion is impressive. To do it in a little over 24 years is extraordinary,” said GlobalData Retail’s managing director Neil Saunders.
“That Amazon has achieved this demonstrates its dramatic advancement in both the retail and technology sectors, as well as the influence it now wields over large parts of the consumer landscape.”