Welcome, Guest! - or
Easy to remember!  »  VinNews.com

San Francisco - Hold The iPhone! Amazon Primed To Be Larger Than Apple

Published on: March 8, 2018 05:00 PM
By: Reuters
Change text size Text Size  
The logo of the web service Amazon is pictured in this June 8, 2017 illustration photo. REUTERS/Carlos Jasso/IllustrationThe logo of the web service Amazon is pictured in this June 8, 2017 illustration photo. REUTERS/Carlos Jasso/Illustration

San Francisco - Apple Inc, the world’s most valuable publicly listed company, is in danger of being beaten by Amazon.com Inc to the $1 trillion mark.

Wall Street’s optimism about last year’s 10th anniversary iPhone had propelled Apple’s stock 24 percent higher over the past 12 months, giving it a market capitalization of $893 billion.

That is $141 billion more than the $752 billion market value of Amazon, the world’s second most valuable publicly listed company, but Amazon has been closing the gap.

Amazon’s stock has surged 83 percent over the past year, bolstered by scorchingly fast revenue growth as more shopping moves online and businesses shift their computing operations to the cloud, where Amazon Web Services leads the market.


In January, Amazon announced that it, Berkshire Hathaway Inc and JPMorgan Chase & Co would form a company to cut health care costs for their employees, which was widely seen as a threat to the existing U.S. healthcare system and underscored Amazon’s ability to disrupt markets.

Amazon dislodged Microsoft Corp as the No. 2 U.S. company by market capitalization in February.

Meanwhile, optimism about Apple’s iPhone X has given way to concerns that demand for the $1,000 device may be weaker than expected.

To be sure, past stock gains are not a reliable predictor of future performance, and the surge in Amazon shares in recent years has been exceptional by most standards.

But if Amazon’s stock were to keep growing on the trajectory seen over the past year, the company’s market capitalization would hit $1 trillion in late August. Apple would reach $1 trillion around a week later if its stock price continued to rise at the same pace seen over the past year.

Most Wall Street analysts are not quite that enthusiastic. Analysts on average expect Apple’s stock price to rise 11 percent and reach $195 within the next 12 months, which would put its market capitalization at $989 billion, according to Thomson Reuters data.

Analysts covering Amazon on average expect its stock to rise 10 percent within the next year to reach $1,700, which would give it a market value of $823 billion.

Apple on Thursday was up 0.60 percent at $176.05, while Amazon rose 0.31 percent to $1,549.90.

More of today's headlines

Rockland County, NY - One day after Winter Storm Quinn blew through the greater New York area, the National Guard has been called into Rockland County, which was slammed... Washington - A soaring U.S. stock market and healthy home price gains lifted Americans' net worth to $98.7 trillion in the final three months of last year, a gain that...



Read Comments (0)  —  Post Yours »


to post a comment

Click here to sign-in.

Scroll Up
Sell your scrap gold and broken jewelry and earn hard cash sell gold today!