Amazon shares hit $1000, showing dominance of e-commerce, cloud
- Author: Zachary Reyes May 31, 2017,
May 31, 2017, 16:15
The combined market cap of the top five is almost US$3 trillion, or more than 13 percent of the S&P 500 index stocks' capitalization, Reuters said. Of note: Amazon is more than four times more valuable than those other fourteen companies combined. Apple may have a lower price per share at $154.38, but with 5.21 billion shares outstanding, the iPhone-maker's market cap comes out to $804 billion-almost double Amazon's.
"Investors better hope these two companies business models are sustainable for the long haul", says Rupkey.
It's party time at Amazon. shares just broke the $1,000 for the first time ever. Amazon opened the retail store Thursday.
One of the main drivers of Amazon's recent success has been its Web Services sector, which centres around cloud-computing and counts on many other large tech companies as clients. The company's market value is a staggering $478 billion, twice that of Walmart and trailing only Apple, Alphabet and Microsoft. Prime memberships help lock in loyalty, which is critical as competitors such as Wal-Mart enhance their e-commerce offerings to slow Amazon's momentum. Amazon now accounts for about 43% of all online sales in the US.
Shopping malls have resorted to hosting concerts and carnivals in empty parking lots to keep customers coming. Yelp runs many of its functions on AWS. Bezos would then take the company public in 1997 despite any clarity regarding its future.
And according to Forbes; Amazon founder Jeff Bezos is believed to be worth about $85 billion, putting him in a virtual tie for second richest person in the world. His ascendancy has won praise from fellow self-made billionaires Warren Buffett and Mark Cuban, owner of the Dallas Mavericks and judge on the television show Shark Tank. When a company gets as expensive as Amazon, she believes it should consider splitting its stock to make it more affordable, as Amazon did three times in the late 1990s. "Symbolically, $1,000 is a demonstration of what Amazon has achieved over the last decade". It's 17% bigger than Berkshire Hathaway, a multinational conglomerate with ownership stakes in some of America's most well-known consumer brands like Coca-Cola, insurance companies and USA infrastructure.