Amazon becomes second trillion dollar US company

Amazon has become the second publicly quoted company in the US to exceed the $1 trillion mark.

The e-commerce company owned by Jeff Bezos, the world’s richest man, achieved the feat one month after iPhone manufacturer, Apple, hit the milestone. 

Amazon shares hit $2,050.49 around noon on Tuesday, bringing the company’s value above $1 trillion. 

The company’s share price has remained bullish, surging as high as 75 percent and adding more than $435 billion to its market capitalisation from around $600 billion in January. 

In the second quarter of 2018 (Q2 2018), Amazon’s net income rose to $2.5 billion, compared to $197 million in Q2 2017.

Amazon’s profit margin increased following years of investing in retail businesses, even as advertising across its sites and prime membership subscription yielded fruits.

It also put its money in developing new technologies, including the successful Amazon Web Services, the company’s cloud business.

Analysts expect Amazon to overtake Apple as the largest US company, similarly to when Alphabet, owners of Google, briefly surpassed the iPhone maker in 2016.