The most valuable company in the world by stock valuation is Apple, and it’s been that way for a while. The Cupertino-based manufacturer of high-end smartphones, computers and tablets has seen its value increase rapidly over the last decade. According to Bloomberg, the company reached a peak value of $950 billion in early June, before a small drop that brought it down to its current valuation of around $910 billion.
But while we’ve all expected Apple to be the world’s first company to breach the mystical $1 trillion mark, it now seems as if an underdog might get there first. On the back of even more rapid growth than Apple over the past couple of years, Amazon has brought its own valuation up to $825 billion. Back in 2016, the company’s value was about $236 billion, which shows a rise of nearly four times in just two years. This phenomenal rise has also made Amazon CEO Jeff Bezos the world’s richest person with a valuation of $141 billion.
This raises the possibility that Apple may not be the first company to cross the fabled $1 trillion mark. It’s only a matter of time before it does cross the number, but the important point here is that it may not be the first. Amazon’s rapid growth, fueled by the massive uptake of e-commerce and Amazon’s dominant position in that field, means that it might just beat Apple to the mark. And it will likely be valued higher than Apple for some time at least.
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Apple’s valuation has a lot to do with its strong position in the United States and China markets, where the iPhone series sells in big numbers. The premium on its products also helps it stay on top; Apple makes big profits on its product range, with high profit margins on practically all of its hardware and software products. However, Apple’s growth isn’t nearly as fast as Amazon’s which is building its position as the world’s leading e-commerce player.
It’s only a matter of time before both these companies cross the $1 trillion mark in stock valuation. However, it’s looking increasingly more likely that Amazon will get there before Apple.