Amazon was the second company to reach a US$1 trillion market capitalization, after Apple, in September 2018.
Amazon crossed the threshold on September 4, 2018, about a month after Apple’s historic achievement. Investors valued its combination of online retail, cloud computing, digital advertising, subscriptions, and logistics infrastructure.
Amazon Web Services was especially important to the company’s valuation because cloud computing generally offered higher margins than traditional retail. Amazon’s Prime membership program also supported repeat purchases and helped connect retail, video, music, and delivery benefits.
The milestone does not mean Amazon had US$1 trillion in cash or sales. It refers to the market value of all outstanding shares at the prevailing stock price. Amazon’s achievement helped establish 2018 as a landmark year for mega-cap technology companies, with Apple, Amazon, and later Microsoft and Alphabet all reaching the trillion-dollar range.