Amazon became the second company in history to exceed a $1 trillion market capitalization in September 2018.
Its shares passed the threshold on September 4, 2018, about a month after Apple achieved the milestone. Amazon’s valuation was driven not only by online retail, but also by Amazon Web Services, advertising, digital media, and its growing logistics network.
The company began as an online bookstore in 1994 and expanded into a broad technology and commerce platform. Amazon Web Services, launched in 2006, became especially important because cloud computing generated substantial revenue and operating profit.
Market capitalization is not the same as cash held by a business. It is calculated by multiplying the current share price by the number of shares outstanding, meaning investor expectations can move the figure sharply.