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Amazon rides the cloud to join the $1trillion club with Apple, and all set dislodge the leader

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Amazon rides the cloud to join the $1trillion club with Apple, and all set dislodge the leader

Online retail giant and cloud computing company Amazon joined Apple in the $1 trillion club for a short while before settling down at striking distance. With stock prices of the giant increasing two fold in a single year, the shares touched $2,050.50 briefly before settling down.

The impressive showing of the retail and cloud computing giant makes it well poised to overtake Apple in the 1$trillion club eventually. The climb has been sharp for Amazon which made it to the club in two decades, whereas the iconic iPhone maker took close to four decades to get there. The explosive pace at which Amazon is growing is unmatched and Apple will find it virtually impossible to match the speed of Amazon’s growth. The price earnings of Amazon is termed as stratospheric by industry analysts, with the 100 plus ratio way ahead of the competition.

The latter has been making all the right moves, increasing investor confidence by spreading footprints in retail, rolling out differentiators and setting the bar higher for the competition. Peter Tuz, President, Chase Investment Counsel, Virginia stated that Amazon is dominating the retail segments worldwide, and web business. He went to add that the giant had a large market available for expansion, as it currently accounted for a very small fraction of the retail sales segment. The future was bright, as the scope for expansion is huge.

Amazon has been investing heavily on different businesses in an effort to leverage the best impact on the eCommerce segment. The investments will also begin to pay off slowly and this will give further impetus to its stock prices and it is expected to quickly dominate the $1 trillion club, in quite the same manner as it dominates the online retail segment, with an impressive showing in the cloud.  The bold initiative of Amazon to dominate the cloud server space can be seen in the manner by which it seeks to undermine the strengths of Google and Microsoft by trading in profitability in the quest for greater market share.

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