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E-commerce giant Amazon.com Inc. has beaten Google parent Alphabet Inc. in market value for the first time, making the online retailer the second most valuable US company after iPhone maker Apple Inc.

Shares of Amazon closed up 2.7 percent higher at $1,586.51, raising its stock market value to $768 billion, topping Alphabet’s market capitalization of $763 billion, after it lost 0.4 percent to $1,095.80. Apple still held the top spot with $889 billion.

Some investors were concerned that Alphabet and others could be affected by regulatory measures, following claims that a political consulting firm was alleged to have improperly accessed and obtained personal data on 50 million users of social media giant Facebook Inc.

Facebook is currently the seventh largest company, and it has shed more than 9 percent of its market cap in the past two days, due to its data issue. Shares of the company has fallen 1.8 percent to $165.00 in pre-market trading.

Stock price of Amazon is currently steady at $1,586.50 in after-hour trading. Alphabet climbed 0.2 percent to $1,100.88, while Apple gained 0.1 percent to $174.99.

Amazon’s Rapid Revenue Growth

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The 2.7 percent increase bolstered Amazon’s shares over the past 12 months to 85 percent, including 35 percent to start 2018, driven by fast revenue growth, as more consumers shift to online shopping and businesses move their computing operation to the cloud market.

Amazon Web Services currently leads the market in cloud services, helping raise the company’s revenue.

Investors are also being drawn to Amazon, as they hope its budding and lucrative cloud computing business will provide the money needed to invest in original content, physical stores, and continue to establish data centers and warehouses.

The Seattle-based group has started to sell more advertising as well, which is expected to make almost $3 billion in digital ad revenue this year, according to a US market research firm.

However, that is only 2.7 percent of the over $100 billion online ad market. Together, Google and video-streaming platform YouTube run more than a third of that market. Google ads, which generated $95.4 billion in 2017, still make up 86 percent of total sales.

Ad revenue is estimated to reach $40 billion this year.

Race to $1 trillion Market Cap

Amazon’s stock rise also intensifies the race to become the first company in the US, and maybe the world, to hit a market cap of $1 trillion.

If the retailer’s shares continue to rise on the path seen over the past year, its market value would reach $1 trillion in late August.   

Amazon took the third spot from tech group Microsoft Corp. in February, making the software maker the fourth biggest company by market cap, followed by internet provider Tencent Holdings Ltd.

Apple on the other hand, is expected to reach $1 trillion about a month later, provided its stock maintained a 25 percent growth pace.

Amazon has captured investors’ attention for the past three years, with market gains moving faster than Alphabet, Apple, and Microsoft, making founder and chief executive Jeff Bezos the richest person in the world.

A slight indication of interest from Bezos in a new healthcare or financial-related business might weigh on shares of potential rivals, given his reputation for making huge investments and staying with them.

Analyst James Cakmak said every opportunity the company is pursuing is a $500 million to $1 billion market.

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