Amazon’s capitalisation hit $1 trillion following a share price of $2,050.50 per share on Tuesday, 4th September. This is the second American company to achieve this feat after Apple did so in early August. Amazon’s model is to change the way retail is done both online and in-shop. This makes the largest online shop in the world and now looking to gain a giant mileage in the brick-and-mortar retail having acquired Wholefoods last year.
This momentous feat has been achieved in under 24 years and lifting its founder Jeff Bezos to be the world’s richest man with net worth of $160 billion.
In relative comparison to Apple who also achieved this feat some weeks ago, analysts among other things look at how long it took for Amazon to raise their market value from $600 billion to $700 billion. It took Amazon just 16 days, compared to Apple’s 622 days, according to the Wall Street Journal.
One strategy that seemed to accelerate this meteoric rise is the reporting style adopted by Amazon who mostly reported no profits or slim margin profits.
Founder Jeff Bezos keeps a long term business objective and consistently said he would rather reinvest sales revenue into the company to give it a better, more profitable future.
That has paid off and Amazon now rakes the business value in what could be termed delayed gratification. But that has not come without sweat. Amazon has had o deal with a lot of negative publicity in terms of some work practices and the working conditions of staff.
Interesting Article: Jeff Bezos’ Top 10 Leadership Lessons
The expected growth Amazon is in the business of how we’ll live in the future.
Although nearly half of every dollar spent online by an American goes to Amazon, e-commerce still makes up just 9% of total retail sales here. And Amazon has also become the market leader in cloud computing, with its Web Services business line consistently beating expectations.