The Strategist

Amazon market cap hits $ 1 trillion

09/05/2018 - 12:39

In the course of trading on Tuesday, capitalization of Inc. for a while exceeded $ 1 trillion for the first time in the Internet retailer’s history. The Amazon share price rose by 1.9% to $ 2,050.5, but then slowed its growth to 1.1%.

Until September 4, Apple was the only modern US company worth more than $ 1 trillion. The company hit the record on August 2. Now its capitalization is almost $ 1.1 trillion.

Now, other technology companies of the US, such as Alphabet (the holding company of Google) and Microsoft, are also gradually approaching the $ 1 trillion mark.

The founder and CEO of Amazon Jeff Bezos is the richest man in the world. According to Forbes, his capital exceeds $ 167 billion. Previous record belonged to the founder of Microsoft Bill Gates - in 1990 he owned $ 100 billion, which is equal $ 149 billion in current prices.

There’s one more record left for Bezos - on the ratio of personal wealth and US GDP. It is noted that the wealth of John Rockefeller, the first dollar billionaire in the world, was about 2% of US GDP at the beginning of the twentieth century. In order to catch up with him, Head of Amazon would need to have about $ 350 billion in his bank account.

Bezos created Amazon in July 1994 and initially ran the business from the garage.  At the first stages, only books were sold on the company's website. Now Amazon is a diversified global corporation with annual revenues of over $ 200 billion and a staff of about 575,000 people.

Amazon held an IPO on NASDAQ in 1997. The placement price was $ 18, and taking into account three splits, that $ 18 turned into almost $ 23 thousand for the past years.