By Jon Swartz
On fifth try, Amazon maintains valuation through the close to jump into exclusive club with Apple, Microsoft and Alphabet
The fifth time was the charm for Amazon.com Inc.
After several close calls, Amazon (AMZN) officially became the fourth tech company to join the $1 trillion club Tuesday. Shares of Amazon increased 2.3% , to close at $1.021 trillion in market value, according to FactSet.
The e-commerce giant has touched $1 trillion on Monday and last week, but failed to maintain the valuation through the close (). It also was above $1 trillion in intraday trading last July and on Sept. 4, 2018, but fell short each time. Market capitalizations are only considered official at the close of trading.
See also:Amazon fails to maintain $1 trillion valuation again ()
Amazon's latest journey toward $1 trillion was in reaction to strong fourth-quarter results released Thursday afternoon. Amazon reported record holiday-season sales and stronger profit than expected despite spending heavily on halving delivery times for Prime subscribers.
For more:Amazon's record holiday sales send stock soaring toward $1 trillion valuation ()
Apple Inc. (AAPL) was the initial member of the exclusive $1 trillion club in August 2018, when Amazon was largely seen as its main competition for the honor (). Amazon was beaten to the mark by Microsoft Corp. (MSFT) last year and Google parent Alphabet Inc. (GOOGL) (GOOGL) , which topped $1 trillion for the first time last month ( ) but has since dipped below.
Tech's biggest brands have cracked the so-called four-comma club despite investigations of their business practices and market dominance by the Department of Justice and Federal Trade Commission. In addition to Amazon, Apple, and Alphabet, Facebook Inc. (FB) is also being probed.
And market valuations are likely to climb, analysts predict. Last week, Wedbush Securities analyst Daniel Ives predicted so-called FAANG companies will lead the industry's stocks up another 25% in 2020. Meanwhile, longtime Apple analyst Gene Munster believes Apple can reach $2 trillion in 2020.
-Jon Swartz; 415-439-6400; AskNewswires@dowjones.com
(END) Dow Jones Newswires
February 04, 2020 16:54 ET (21:54 GMT)
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