At the beginning of August, Apple was the first company to break the threshold of 1 trillion dollars in terms of market value, thanks to the impressive quarterly figures. The American technology company can now call itself the most valuable company in the world. But how long can the technology giant stay ahead?
In addition to the investors, CEO Tim Cook will be delighted. Especially because he is expected to receive his package of $120 million in stock options this Friday. But Cook will also have the competitor, since Internet giant Amazon has a big chance to knock Apple off the throne.
Amazon now worth nearly $929 billion. So there is still a considerable gap to be bridged by the Jeff Bezos. According to MKM Partners, however, the figures and the growth in profitability speak for themselves. The words of Rob Sanderson in a report suggest that a replacement of Apple by Amazon is a matter of time. Sanderson is a major analyst at the US investment house, and he is convinced that Amazon is experiencing more dynamic growth than Apple.
Sanderson has therefore raised price target for Amazon for the next twelve months from $1880 to $2215. The expert mentions the enormous growth potential of Amazon Web Services (AWS) as the main reason for this. According to Sanderson, this segment alone will reach a value of one trillion dollars in the next six years.
In short, it is wise for investors to look further at Amazon than the dominant position that the group occupies in the field of e-commerce. According to Sanderson, Amazon will cut the 2.5 trillion dollar mark by 2024 and win the prestigious match with Apple in the future, at least as no other company will be able to outwit both tech giants as a big surprise.
Not only the numbers point to Apple’s defeat by Amazon, the online retailer has a wide range of business activities compared to Apple. In addition to existing services and products, such as Amazon Prime, the Echo products with language assistant Alexa and Web Services, the company is currently developing a new device called ‘Frank’.