Just a few months ago, there was a pretty tight race to see who would become the first $1 trillion company – in terms of market cap. It was between Alphabet, Microsoft, Amazon and Apple. Apple ultimately became the first to the $1 trillion club, after it posted some incredible quarterly earnings about a month ago. Today, Amazon joined Apple as the only two $1 trillion companies here, when its stock price passed $2,050 per share. It opened up today around $2,026 and rose pretty quickly, before dropping back to $2,031 where it currently is. So it may not close today as a $1 trillion company, but it’s only a matter of days before that happens.
Being a $1 trillion company is a pretty big deal, considering there are only two companies (now) in the world that are worth that much. Amazon’s stock has more than doubled in the past year, and since its stock price is also one of the largest, that is pretty incredible. Many investors have been adding Amazon stock to their retirement accounts, 401k’s and IRAs, which is smart, seeing as Amazon has continued to grow. Many analysts were not sure that Amazon would be the first $1 trillion company, but they do believe that Amazon would become the first $2 trillion company. Which in of itself is pretty incredible, as that means that Amazon is going to continue to grow for many years to come.
There has been some pressure from analysts for Amazon to do a reverse split on the stock, and that’s because the stock price is so high right now, that it makes it tough for a lot of smaller investors to purchase some shares of Amazon. But typically when a company does a reverse split (essentially takes one share and splits it into more shares, bringing the price down) a lot of investors will sell the stock, which could result in Amazon’s stock price dropping a lot more than expected. But there doesn’t appear to be any signs of a reverse split coming anytime soon.