Wall Street’s over-optimism about last year’s 10th anniversary iPhone X pushed Apple’s stock 24 percent higher over the past 12 months, giving it a market capitalisation of $893 billion. That is $141 billion more than the $752 billion market value of Amazon, the world’s third most valuable publicly listed company, but Amazon has been quickly closing the gap as the world has found out that the iPhone X was not selling that well.
According to Reuters, Amazon’s stock has surged 83 percent over the past year, 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.
In January, Amazon announced that it, Berkshire Hathaway Inc and JPMorgan Chase would form a company to cut health care costs for their employees, which was widely seen as a threat to the existing U.S. healthcare system and underscored Amazon’s ability to disrupt markets.
Amazon dislodged Microsoft as the number three US company by market capitalisation in February.
At $783 billion, Alphabet Inc has the second largest market capitalisation. The Google parent company’s stock has grown about 33 percent over the past year, faster than Apple but far slower than Amazon.
If Amazon’s stock were to keep growing on the trajectory seen over the past year, the company’s market capitalisation would hit $1 trillion in late August. Apple would reach $1 trillion around a week later if its stock price continued to rise at the same pace seen over the past year and it does not suffer from any more bad news.
Alphabet would not reach $1 trillion until 2019 if its stock price continued to rise at the same pace seen over the past year.
Most of the cocaine nose jobs of Wall Street analysts are not that enthusiastic about the growth of Apple or Amazon. Analysts on average expect Apple’s stock price to rise 11 percent and reach $195 within the next 12 months, which would put its market capitalisation at $989 billion, according to Thomson Reuters data.
Analysts covering Amazon on average expect its stock to rise 10 percent within the next year to reach $1,700, which would give it a market value of $823 billion.