Amazon became the second U.S. company to reach a US$1 trillion market capitalization, shortly after Apple in 2018.
Amazon crossed the threshold on September 4, 2018, about a month after Apple. Its valuation reflected the rapid expansion of online retail, the growing importance of Amazon Web Services, and investor expectations for continued international growth.
The company began as an online bookstore founded by Jeff Bezos in 1994, but its business broadened into marketplace retail, cloud computing, advertising, logistics, digital media, and consumer devices. That diversification helped Amazon become much more than a traditional retailer.
A market capitalization milestone does not mean a company has one trillion dollars in cash. It is the total market value assigned to its publicly traded equity at a particular share price. Amazon’s crossing was also notable because the company had spent years prioritizing expansion and infrastructure over near-term accounting profits.