Amazon briefly surpasses $1tn valuation

Amazon briefly surpasses $1tn valuation

Amazon has become the second company worldwide to surpass the $1 trillion status.

Just weeks after Apple, shares in the group rose almost two percent to a high of $2,050.50 in morning trade before slipping back.

Jeff Bezos founded Amazon is 1994 and in just 25 years, the group now has revenues of $178 billion (£139 billion).

“To reach a market capitalisation of over $ 1trillion is impressive. To do it in a little over 24 years is extraordinary,” said Neil Saunders, the managing director of GlobalData Retail.

“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.”

The tech giant first went public in 1997, when shares were worth just $18. On Tuesday shares hit $2,050, pushing the company’s valuation over $1 trillion. Shares closed slightly lower, valuing the company at $995 billion.

Amazon and Apple (NASDAQ: AAPL) have both been rivalling to reach the landmark $1 trillion valuations for months. Amazon lost the race when stock markets responded well to Apple’s financial results last month.

The trillion-dollar company has received criticism from all side on its journey to the top.

After Bezos bought the Washington Post, Trump did not respond well to the purchase.

“Is Fake News Washington Post being used as a lobbyist weapon against Congress to keep Politicians from looking into Amazon no-tax monopoly?” Trump said last year.

“Amazon Washington Post has gone crazy against me,” Trump also wrote on Twitter in July.

The group has also faced criticism over treatment of employees in UK warehouses and its tax payments. 

Amazon only paid £4.5 million in corporation tax in 2017 despite UK sales of nearly £2 billion.

In May, the group was accused of treating workers in the UK warehouses like robots.

Amazon said it was “simply not correct to suggest that we have unsafe working conditions based on this data or on unsubstantiated anecdotes. Requests for ambulance services at our fulfilment centres are predominantly associated with personal health events and are not work related. Nevertheless, ambulance visits at our UK fulfilment centres last year was 0.00001 per worked hour, which is dramatically low.”

Shares in the group (NASDAQ: AMZN) closed on Tuesday up 1.33 percent at 2.039,51.

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Safiya Bashir
Safiya focuses on business and political stories for UK Investor Magazine. Her interests include international development, travel and politics.