Apple became the first company to reach a $1 trillion market capitalization in 2018, ahead of Amazon.
Apple crossed the milestone in August 2018, while Amazon reached the same valuation later that year. The comparison shows how two very different business models became leaders in the market-cap rankings: Apple through devices and services, and Amazon through e-commerce, cloud computing, advertising, and logistics.
Market capitalization reflects investor expectations as well as current financial performance. Share prices incorporate views about future growth, competitive advantages, risks, and profitability, so the largest company by market cap is not necessarily the company with the highest annual revenue.
Apple’s earlier achievement was followed by further records, including becoming the first company to reach $2 trillion and $3 trillion in market value. These milestones are based on publicly traded equity prices.