Amazon became the second U.S. business to reach a $1 trillion market capitalization, following Apple in 2018.
Amazon crossed the milestone on September 4, 2018, less than five weeks after Apple. Its valuation was powered by the rapid expansion of online retail, Amazon Web Services, digital advertising, logistics, and subscription products such as Prime.
The company began as an online bookstore in 1994, founded by Jeff Bezos in Bellevue, Washington. It changed its name from Cadabra to Amazon in 1994 and opened for business in 1995. Over time, its business model expanded far beyond books.
A trillion-dollar market capitalization does not mean Amazon held that amount in cash. It is calculated by multiplying the market price of each share by the number of shares outstanding. Because stock prices fluctuate, the valuation can move above or below a round-number threshold.