Among the world’s top five largest companies are Apple, followed by Alphabet, Microsoft and Exxon.
The online retail giant surpassed the $355 billion market value of Berkshire Hathway by reaching a market cap of $356 billion.
Amazon settled at an all-time intraday high of $755.90 and ended the session up by 1 percent.
This is good news for the company ahead of its second annual Prime Day which, according to some analysts, could be their biggest day ever.
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Bezos’ e-commerce giant broadly topped Buffet’s Berkshire Hathaway overnight.
A few months after, the most prominent market players of Australia, Platinum Asset Management’s Kerr Neilson stated that Buffet’s finishing era has already been reached.
Further, Australian investors considered Buffett as their hero, and even called him “Oracle of Ohama”. Buffett’s strategy mainly involves acquiring stocks for less than they are essentially worth.
Apparently, Bezos is less understood in the country, and it seemed that now is the perfect time to pay attention.
Amazon started as an online bookseller and later expanded in countries such as the US and Europe. It also engaged in businesses relative to cloud computing, and is dedicated to expanding more in order to compete with tech companies.
The e-commerce business of the company runs on tiny margins, as its 1997 IPO has been operating on a break-even basis. Bezos notably says to his rivals, “your margin is my opportunity.”
Amazon generates double-digit revenue growth for almost every quarter and extracts poor profits. Its cashflows are reinvested and are set for growth, which involves infrastructure expansion, and prices are maintained lower in order to gain massive market share.
Meanwhile, market players mentioned that they’re ready to support the plan, though Amazon is the leading market in the US e-commerce as it only covers a small part of US retail.
Queensland-based Decisive Asset Management Jason Sedawie said, "It was a game changer. AWS is 10 per cent of their revenue and 58 per cent of their profits. They kept it quiet for a long time and people didn't realize how profitable it was.”
"It's growing faster than the original Amazon [e-commerce] business. They are just so far ahead it's quite amazing," he added.