Check out the on-demand sessions from the Low-Code/No-Code Summit to learn how to successfully innovate and achieve efficiency by upskilling and scaling citizen developers. Watch now.


(Reuters) — Amazon.com became the second most valuable publicly listed U.S. company on Tuesday, surpassing Google parent Alphabet for the first time.

Amazon shares finished up 2.69 percent at $1,586.51, for a market capitalization of $768 billion, underscoring Wall Street’s confidence in its relentless expansion into cloud computing, groceries and other new businesses.

Alphabet lost 0.39 percent, trimming its stock market value to $762 billion, as Wall Street fretted about regulatory fallout following revelations that a political consulting firm had improperly obtained personal data on 50 million Facebook users.

Above: Race for $1 trillion market cap

Together, Alphabet and Facebook dominate online advertising. They have previously faced government criticism for how they employ their user data.

Event

Intelligent Security Summit

Learn the critical role of AI & ML in cybersecurity and industry specific case studies on December 8. Register for your free pass today.

Register Now

Amazon’s stock has surged 81 percent over the past year, through Monday, bolstered by scorchingly fast revenue growth as more shopping moves online and businesses shift their computing operations to the cloud, where Amazon Web Services leads the market.

“They’re using their cash flow to develop new businesses,” said Tim Ghriskey, chief investment strategist at Inverness Counsel in New York. “They could have Apple in their sights at some point.”

Seattle-based Amazon dislodged Microsoft as the No. 3 U.S. company by market capitalization in February. Apple is the world’s most valuable publicly listed company, with a market capitalization of $889 billion.

Obviously, past stock gains are not a reliable predictor of future performance, and the surge in Amazon shares in recent years has been exceptional by most standards. But if Amazon’s stock were to keep growing on the trajectory seen over the past year, its market capitalization would hit $1 trillion in late August.

Apple’s market cap would reach $1 trillion around a month later if its stock price continued to rise at the 25 percent pace seen over the past year.

Alphabet’s stock has risen 4 percent so far in 2018 and is up 26 percent in the past year.

The median of analyst price targets for the three companies put Amazon’s market capitalization at $823 billion, Alphabet’s at $914 billion and Apple’s at $989 billion, according to Thomson Reuters data.

(Reporting by Noel Randewich; Editing by Leslie Adler)

VentureBeat's mission is to be a digital town square for technical decision-makers to gain knowledge about transformative enterprise technology and transact. Discover our Briefings.