Amazon has become the second American company (after Apple), whose market value surpassed one trillion dollars.
Experts say that the undoubted success of the 24-year-old company and a guarantee that it will be investing more and more.
For many years, the shareholders have not seen significant profits from the company, as it «poured» almost all the funds in the development of business: buying up other companies to develop new technologies and so on.
And it is beginning to bear fruit, and very rapidly. So, if in the second quarter of 2017, the company’s net income was $197 million in the second quarter of 2018, it increased to $2.5 billion. The cost of the company at the beginning of this year was «only» $580 billion. And now a trillion.
Experts say: the main components of this success is the popularity of Amazon Web Services; advertising, which the company sells on their sites, as well as income from subscription Prime Members.
«I believe that by 2020 the value of the company can even double. This, in my opinion, the best combination of big business with a spirit of entrepreneurial startups,» says Daniel Martins, who heads his own independent research firm.
To prevent the incredible promotion, Amazon can only antitrust regulators, but it is unlikely. They are usually studied, not whether the company uses its market dominance to raise prices and that Amazon has not yet been seen.
