Though its products may be planning some sort of robot uprising that could well end in the collapse of civilization as we know it, Amazon’s stock – literally – continues to rise.
At the close of business yesterday, Amazon’s market capitalization hit $768 billion, making it the world’s second-most valuable publicly traded company behind Apple Inc. In reaching a new high, Amazon also passed its longtime rival Alphabet – Google’s parent company. Alphabet’s market capitalization was around $763 billion at the close of business yesterday.
While Google and Alphabet still dominate digital advertising, Amazon’s forays into groceries and even health insurance have given investors reason to believe that Amazon is the company of the future. Alphabet is aware of it, too: Google has turned its focus to cloud computing services in order to catch up to Amazon Web Services, and the Google Home is a direct response to Amazon’s Alexa (which will, I remind you, eventually kill us all).
Google’s foothold in the digital advertising space is not guaranteed – Amazon is quickly becoming a top destination for merchants to advertise their goods. Similarly, in the streaming media space, Amazon has created its own streaming media platform (Twitch) to compete with Google’s YouTube.
Of course, both Google and Amazon are still far behind Apple, whose market capitalization is around $890 billion. But Amazon’s market capitalization is outpacing that of its competitors, and with so many new business developments in the pipeline, it’s not inconceivable that Amazon will soon challenge Apple for the title of the world’s most valuable business.