Amazon has become America’s second $1 trillion company on Tuesday. Apple rose into the 13-digit territory at the beginning of August, and Amazon and Apple now make up more than eight percent of the entire value of the S&P 500, according to CNN.
The 24-year-old company has grown remarkably quickly. In order to get to a $1 trillion market cap, you would have to add up the valuations of the 14 largest big box retailers ranked by 2017 revenues, from Walmart to Autonation, writes CNN.
For years, investors buoyed Amazon’s stock but did not see the company make significant profits. Amazon built out its fulfillment center network, bought up companies and developed new technologies. But over the last year, Amazon has started turning up the dial on profits. It was worth just $580 billion at the beginning of 2018. The success of Amazon Web Services, the company’s cloud business, as well as the advertising it sells across its sites and revenues from Prime membership subscriptions are what is driving the profits, reports CNN.
Thanks for reading InsideHook. Sign up for our daily newsletter and be in the know.
