Amazon just became the second member of the 1 trillion dollar club.

5 (100%) 2 votes
5 (100%) 2 votes

Amazon just became the second member of the trillion-dollar club.

The e-commerce juggernaut hit the 13-digit milestone Tuesday morning when its stock briefly surged to $2050.50, passing the $2,050.27 mark to win a $1 trillion market capitalization.

The web-retailing giant — founded in 1994 when Jeff Bezos started selling books out of his garage in Seattle —crossed the stratospheric threshold just over a month after Apple became the first company to do so on Aug. 2.

Amazon shares were recently trading at $2,040.59. up 1.4 percent.

It took Apple 35 years as a public company to reach a trillion, and Amazon just 21 years. Both are now trailed by Microsoft and Alphabet, parent of Google, which are both roughly $150 billion shy of the $1 trillion mark.

Facebook, meanwhile, currently sits just under $500 billion, as Wall Street continues to fret that privacy concerns will dog its growth and profitability.

Amazon’s stock has more than doubled over the past year, having hit $1,000 only last October. Over the past decade, it has surged more than 3,000 percent as it has expanded from selling books to becoming a major player in tech and entertainment with its Echo devices and Oscar-nominated films.

Amazon Web Services, the company’s cloud service, is the backbone on which some of the world’s most popular sites, such as Netflix and Airbnb, are built.

Amazon in April revealed that its Prime subscription service for free shipping, movies and music — which costs $119.99 a year — now has over 100 million subscribers around the world.

Last week, analysts at Morgan Stanley raised their price target for the retailer to $2,500 — a $1.2 trillion valuation — from its previous target of $1,850.

“We have increasing confidence that Amazon’s rapidly growing, increasingly large, high margin revenue streams (advertising, AWS, subscriptions) will drive higher profitability” analyst Bryan Nowak said in a note.

Bezos is now worth over $165 billion, well ahead of runner-up Bill Gates, whose wealth clocks in at just over $98 billion, according to Bloomberg.


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