Amazon hits $1 trillion threshold; trails Apple

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Amazon on Tuesday emerged United States’ second public company to cross the $1 trillion valuation threshold in 2018.

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The company’s shares hit $2,050.49 shortly before noon on Tuesday, bringing the company’s value above $1 trillion before declining slightly at the close of trading.

The development places the company behind Apple, which became the first $1 trillion company last month. It is currently worth about $1.1 trillion.

Despite criticism from Wall Street and the media about the company’s spending habit, Amazon had $178 billion in revenues last year and made $2 billion in profit in its most recent quarter.

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Wall Street has grown very enthusiastic about Amazon’s non-retail businesses, including Web Services that provide cloud computing services to companies and government. Its advertising division also makes billions by selling ads to companies that want their products to show up when shoppers search on the site.

Other big companies like Boeing (market cap $207 billion), 3M ($119 billion) and General Motors ($55 billion) are worth far less than the high-flying tech companies due to what analysts describe as poor prospect of reaching growth.

The company’s blowout success has placed its founder and CEO, Jeff Bezos, at the top of Forbes’ billionaires list this year.