Amazon just took Alphabet’s 2nd place in the standings of most valuable company in the world while Apple remains topper of the list boasting a valuation of $889 billion.
The e-commerce giant rose by 2.7 percent on Tuesday and thus lifted its stock market value to $768 billion and $1,586.51 per share. Parent company of Google, Alphabet fell by 0.4 percent and now possesses a valuation of $764.5 billion additionally, since bagging an all-time high of 1,197 per share on Jan 29, their stock value fell by 8.5%.
This achievement comes a few weeks after Amazon CEO and founder Jeff Bezos came first in Forbes annual billionaires list with a total wealth of $112 billion and thereby becoming the first American possessing more than $100 billion.
All U.S tech mega-giants have competed vigorously in the last year to increase their incomes and valuation but Amazon outperformed them all with a stock surge of 85 percent over the past 12 months, among which 35 percent since the start of the current year. As neither Amazon nor Apple Inc. are showing signs of fragility, their fast growth speculate interests of which company will surpass the $1 trillion valuation mark, something never achieved before.
Investors have been pouring enormous amounts of capital in Amazon due to its fast growth and very profitable cloud computing business, which provided the capital needed for investments in original content, physical stores and keeping on building data centers and warehouses. Additionally, Amazon expanded its services very well to escalate revenues far beyond their primary e-commerce business into cloud computing, artificial intelligence, consumer devices, entertainment, package delivery and many more.
On the other hand, the recent revelations that Cambridge Analytica took profit of data from 50 million Facebook users sent the company’s market capitalization crashing by 9 percent and now ranks the social media company at 7th place, behind Microsoft at 4th and China’s Tencent at 5.