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Amazon, for a brief time yesterday, became the second US company to achieve a $1 trillion market valuation.

The company’s stock price “traded at $2,049.50 at 11:35 a.m. New York time, pushing its market capitalization over the trillion-dollar mark. It followed in the footsteps of Apple, which became the first trillion-dollar company early last month.”

It didn’t last long. The stock closed at $2,039.51, giving Amazon a market value of a mere $995 billion.

Some context from the Seattle Times:

“The landmark valuation was reached after two decades of growth in online retail, but was pushed the final mile by Amazon’s other businesses – largely cloud computing and its expansion into physical retail, notably with the purchase of upscale grocer Whole Foods.”

The Times notes that “just over a year ago, Amazon’s market value hit the $500 billion milestone, stirring speculation it might become the first company to hit a $1 trillion valuation. Amazon went on to surpass Microsoft’s market value early this year, then it passed Google parent company Alphabet.  But it couldn’t catch up to Apple and its four decades of selling computer hardware before the Cupertino, California, company hit the trillion-dollar milestone Aug. 2.

“Still, Amazon raced to the mark far faster than Apple did. While Apple lumbered through the final stretch of its slog toward $1 trillion, needing 15 months to traverse the last $200 billion, Amazon covered the same ground in a three-month sprint.”

And, the Wall Street Journal writes that the analyst community “expects Amazon to pass Apple in annual sales for calendar year 2019.”
KC's View:
The most important thing about these numbers is that they give Amazon access to cheap cash with which it can fund all its various efforts and initiatives … and this is what gives it enormous competitive advantages.

To put this in context, this market valuation is enough to find 20,000 second headquarter cities (if my math is correct).