Amazon became the second publicly traded company to reach a $1 trillion market capitalization, following Apple, in September 2018. Its shares crossed the milestone on September 4, 2018, about a month after Apple reached it.
The achievement reflected Amazon’s expansion from an online bookstore into a diversified technology and retail company. Its marketplace connected millions of sellers with customers, while fulfillment centers, Prime subscriptions, advertising, digital entertainment, and AWS created additional businesses.
Amazon’s stock-market value was not based simply on sales volume. Investors also considered the company’s potential to earn higher profits as its businesses scaled. AWS was particularly important because cloud services generally carry different economics from traditional retail.
Market capitalization is a moving measure. Amazon’s place among the world’s richest companies can change quickly when its share price moves, and comparisons across years should account for stock splits and changing numbers of shares.