Apple is close to hitting $1 trillion in market capitalization, but it won't be there alone for too long. Amazon could soon surpass Apple in terms of market capitalization, reported Reuters.
According to the report, Apple's market capitalization hit a record $934 billion last week, on the heels of a $100 billion stock buyback announcement and news that Warren Buffett's Berkshire Hathaway amassed a huge stake in the Cupertino, California iPhone maker, and could add even more to that. Since Apple reported its March quarter earnings results, its stock has jumped 12 percent, and is 8 percent shy of hitting the $1 trillion mark in terms of valuation.
While Apple is getting a lot of accolades from analysts on Wall Street and investors, it won't hold the top spot for market capitalization for long. Amazon, which Reuters noted is the second largest listed U.S. company based on its market value of $780 billion, could hit the $1 trillion mark shortly. Although Amazon is a whopping $148 billion smaller than Apple, its stock price and sales are expanding faster. The eCommerce giant's stock is trading at more than 100 times expected earnings, while Apple's valuation is 15 times earnings.
During the course of the past year, Apple's shares have jumped 24 percent thanks to the iPhone X. Meanwhile, Amazon's stock has climbed 70 percent in the same time frame, aided by a 31 percent increase in revenue as more U.S. consumers shop online and more businesses use Amazon Web Services.
If Apple’s stock were to keep growing at the pace seen over the past year, the company’s market capitalization would hit $1 trillion in September. Amazon would reach $1 trillion around October if its stock price continued to rise at its same rate, and would overtake Apple soon after.