Amazon is officially worth $1 trillion, joining other tech titans
By Tue, Feb 4, 2020
The fifth time was the charm for Amazon.com Inc.
After several close calls, Amazon AMZN, +2.27% officially became the fourth tech company to join the $1 trillion club Tuesday. Shares of Amazon increased 2.3% , to close at $1.021 trillion in market value, according to FactSet.
The e-commerce giant has touched $1 trillion on Monday and last week, but failed to maintain the valuation through the close. It also was above $1 trillion in intraday trading last July and on Sept. 4, 2018, but fell short each time. Market capitalizations are only considered official at the close of trading.
See also: Amazon fails to maintain $1 trillion valuation again
Amazon’s latest journey toward $1 trillion was in reaction to strong fourth-quarter results released Thursday afternoon. Amazon reported record holiday-season sales and stronger profit than expected despite spending heavily on halving delivery times for Prime subscribers.
For more: Amazon’s record holiday sales send stock soaring toward $1 trillion valuation
Apple Inc. AAPL, +3.30% was the initial member of the exclusive $1 trillion club in August 2018, when Amazon was largely seen as its main competition for the honor. Amazon was beaten to the mark by Microsoft Corp. MSFT, +3.29% last year and Google parent Alphabet Inc. GOOGL, -2.51% GOOG, -2.62% , which topped $1 trillion for the first time last month but has since dipped below.
Tech’s biggest brands have cracked the so-called four-comma club despite investigations of their business practices and market dominance by the Department of Justice and Federal Trade Commission. In addition to Amazon, Apple, and Alphabet, Facebook Inc. FB, +2.76% is also being probed.
And market valuations are likely to climb, analysts predict. Last week, Wedbush Securities analyst Daniel Ives predicted so-called FAANG companies will lead the industry’s stocks up another 25% in 2020. Meanwhile, longtime Apple analyst Gene Munster believes Apple can reach $2 trillion in 2020.
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