Amazon joins the $1000 club
- Author: Zachary Reyes May 31, 2017,
May 31, 2017, 3:26
Amazon's biospheres, "The Spheres" near completion in downtown Seattle, on Thursday, May 4, 2017. "The markets Amazon is playing in with global retail and cloud computing are just massive".
NEW YORK (AP) - Amazon, the e-commerce giant that has changed how much of the world shops for books, toilet paper and TVs, hit a new milestone.
In this Thursday, May 25, 2017, photo, gift cards are on display at the Amazon Books store in the Time Warner Center at Columbus Circle, in NY.
Amazon topped estimates in late April when it posted revenue of $35.7 billion and an earnings per share of $1.48, sending the stock on its upward trend.
Those splits make the stock more affordable and generate brokerage fees.
Among the other four largest US companies by market cap, Apple (AAPL.O) and Facebook (FB.O) share prices have also risen almost 33 percent this year while Alphabet (GOOGL.O) has gained 26 percent and Microsoft (MSFT.O) has added 13 percent.The combined market cap of the top five is near $3 trillion, or more than 13 percent of the S&P 500 index stocks' capitalization.Amazon, the only one of the top five not in the technology sector, accounts for 17 percent of the market cap of the S&P 500 consumer discretionary sector.
Investors put more value in Amazon's web traffic and delivery network than they do in Wal-Mart's vast store presence because online spending will grow more than four times faster than overall retail spending this year as shoppers continue to shift from stores to websites, according to EMarketer Inc.
Another company with a similar philosophy is Alphabet Inc., the parent company of Google.
The race between Alphabet and Amazon to $1,000 was on earlier this month and Amazon just took the prize.
And its four-digit stock price places it in rare company: Only four other USA -listed companies have shares that trade above $1,000.
Those companies are closing locations and Amazon is filling the void, sometimes literally.
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