Thursday, September 13, 2018

Amazon Joins Apple as the World’s Second Trillion Dollar Company in the U.S.

On September 4, Amazon reached a milestone by joining Apple in the trillion dollar club. Along the 24 years of operation, this is the first time that the company’s total market value reached $1 trillion for a short while. Initially, Amazon needed to achieve the mark of $2,050.27 per share I order to cross the trillion-dollar threshold. But the retail giant’s stock did more than that since the stock rose to an amount of $2,050.50.

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In 2017, the company’s total recorded sales accumulated around $177 billion and Amazon shares only went upwards from there. At the start of 2018, the company’s value is worth $580 billion. One of the drivers of its revenue is the Prime subscription service for the users. Also, the company’s cloud business called Amazon web service and its voice-based system called Alexa both proved to be a success and contributed to the increased valuation of the company. According to Daniel Martin, who leads his own research firm, Amazon can double in value by the year 2020. 

Amazon’s CEO named Jeff Bezos is proud of the outcome, and he became the world’s richest man last year, he’s even worth more than Bill Gates, the founder of Microsoft. Bezos controls the Amazon, he continued on avoiding scandals, controversies, and distractions that may harm the company in any way possible. The expenses and the revenue are made sure to be on par to prevent potential losses. To cut down costs, the company invested in warehouses, shipping, drones, and other systems of distribution. With this, they are able to deliver without the help of outsourced distributors.

After Apple and Amazon, two companies are trying really hard to be the third company that crosses the trillion-dollar threshold. These tech competitors are Microsoft with a market value of approximately $850 billion and Google with $840 billion market cap, as of the same day that Amazon joined Apple. Both can accomplish this but who knows which one will be earlier to reach its goal. 

Attracting Investors

As a result, many businessmen are easily converted into becoming investors. Even the skeptics are attracted to the company since they have confidence in its revenue. The online retail giant is able to dominate each industry it enters. From groceries to healthcare products, this is the store for people. If its optimistic growth continues, the prediction by 2020 will easily come true. 

From a small bookseller in Seattle into one of the biggest companies out there, Amazon truly stepped up its game and all the people can evidently see that. Since it still does not have headquarters on some country, the company decided to have an additional in North America, and it’s still expanding globally. 

Antitrust Issues

Along with the growth of a company come the federal laws for necessary regulations. Antitrust regulators usually analyze a situation in the marketplace by looking whether the dominance of a company in a given industry has been used to unreasonably raise the prices of its products. As for Amazon, there is nothing to worry about since its prices are even lowered. 

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