TOKYO, Aug. 31, 2018 /PRNewswire/ - Amazon's market capitalization could potentially increase by hitting $2 trillion says Hana Shizuoka Trading. The company is driven by growth mainly in advertising and its cloud business model, which is set to expand in the coming years.
Amazon's stock rallied to $2,000 per share on Thursday's market open for the first time. A major stepping-stone towards its $1 trillion market capitalization for the company as it strives for its next target.
"For clients who have researched Amazon for the past few years would have seen a significant drive in advertising, you just have to start thinking what can be achieved in the next few years," said Thomas Hinton, Head of Corporate Trading at Hana Shizuoka Trading.
The first publicly traded U.S. Company to reach a $1 trillion market capitalization was Apple Inc. in early August this year.
"There is a lot of other big companies that are going to attempt to slow down Amazon and take their market share as they battle for advertising revenues," commented Kan Jae, Research Director at Hana Shizuoka Trading.
Amazon has also been pushing into new business ventures such as groceries. Last year the company purchased the grocer Whole Foods Market for over $13 billion US dollars. Amazon has been entering a lot of new markets, such as health care, with the recent purchase of pharmaceutical company Pill Pack, a sign for its continuing development in new markets.
Analysts at Hana Shizuoka Trading have noted that its commitment to investing in new business areas has helped Amazon grow its market value; a 71 percent gain in share price year to date.
In the companies most recent quarter that ended in June, Amazon had a significant report on its sales at over $50 billion with a pre-profit of $2.5 billion US dollars.
Amazon's stock has been a major top performer in the bull market that started in March 2009; it gained over 3,000 percent.
The recent surge of capital injected into these big technology stocks have continued to help lead the U.S. equity market to higher heights not seen on the Nasdaq composite and the S&P 500 index.
SOURCE Hana Shizuoka Trading