Amazon becomes second trillion-dollar company

Amazon becomes second trillion-dollar company

Amazon becomes second trillion-dollar company

Amazon just became the second member of the trillion-dollar club.

Bezos founded the company in his Seattle garage as a small online book seller.

Amazon - headed by founder Jeff Bezos, who has become the world's richest person on the back of the relentless rally in Amazon shares - hit the milestone just over a month after Apple became the first company to do so on August 2.

In two decades the company expanded far beyond its bookseller beginnings, combining its world-spanning retail operation with less flashy but very profitable advertising and cloud computing businesses. The Cupertino-based iPhone-maker is now worth about $1.1 trillion.

However it was tech giant Apple that was named as the first publicly listed United States company to be valued at $1,000,000,000,000, on 2 August.

Amazon retreated slightly after hitting the milestone, and near 1545, it was up 1.3 percent to $2,038.71. It first reached $100 on October 23, 2009.

Apple reached the same milestone in early August.

Ben Barringer, an equity research analyst at Quilter Cheviot, said Amazon still has a long to way go, which means it could end up bigger then Apple.

According to a report in CBS News, Amazon shares hit $2,050.49 - climbing 1.5 per cent in the morning trade - bringing the company's market value above $1 trillion. The combined value of both companies is equal to roughly 10 percent of USA gross domestic product.

For the fiscal year 2017, Amazon and its 560,000 employees around the world reported total sales of $177.87 billion (R2,7 trillion), netting it an adjusted profit of $6.15 (R93) per share, according to the company's annual report.

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