Amazon Quickly Approaches Trillion Dollar Company Mark, Maybe First in Current Market
SEATTLE, WA - In light of the recent Olympics games that revved up the competitive nature in all of us, there is another race in the works, though it showcases a different kind of international glory. According to Facts Chronicle, Amazon is in the running to be among the first trillion-dollar companies during the current state of the market.
Amazon’s current market cap is $738.5 billion at the time of publication for this article, with shares coming in at $1,525—up 13 percent. E-commerce stateside has seen the value of stocks increase at a rapid rate in recent days, with shares worth $1,500 just five days ago. According to BBC, who recently reported on the race to the trillion-dollar company claim, share price for the company rose by over 50 percent last year.
The company’s foray into grocery has provided bountiful business opportunities. Though holding the company back from making it over the finish line, BBC reckons, is the rate at which it spends money, reporting that more than $4 billion was spent creating Prime TV content as the service fights off competing entertainment services. In addition to these expenses, it is also investing in Alexa and its delivery systems.
Amazon’s progression is competing against other industry-spanning titans like Apple, whose current market cap, as of the time of the article’s publication, was $914 billion. CNN pointed out in its recent article that stock need only go up by 10 percent to reach $1 trillion. Another contender is Google parent Alphabet, which sits at $800 billion, CNN reported.
This didn’t deter analyst Dan Ives of GBH Insights, who, in a note seen by CNBC, explained, “The Prime membership moat that [CEO Jeff] Bezos & Co. have built is gaining further steam in the field, and the Amazon ‘flywheel effect’ is further playing out globally among consumers.” He continued, “The Bezos strategic path, both on the consumer and enterprise fronts, [is] still in the middle innings of playing out, and Amazon remains a ‘green light’ name to own at these levels.”
The reason for Amazon’s exponential success in recent weeks and months is its wide-reaching grip on many industries, with its recent takeover of Whole Foods. Further, Facts Chronicle reported that Prime memberships, which Ives emphasized as an immense strength for the CEO and company, and the recently-extended Visa rewards benefit Whole Foods’ customers. This provides incentive for Amazon customers to look to Whole Foods, which sits under Amazon’s umbrella, for their culinary needs.
Will Amazon’s grocery endeavors lead the business to the finish line in time to beat competitors eyeing the role of becoming the first trillion-dollar company in our current market state? Will the power of produce push Amazon to the front of the pack? AndNowUKnow will continue to keep you updated with the latest!
