14 DAY TRIAL // Apple is very close to becoming the world’s first trillion-dollar company thanks to a current market cap of over $900 billion, but according to a recent analyst estimate, there’s a better chance Amazon manages to reach this important milestone before the Cupertino-based firm.
In a note to investors, GBH Insights analyst Dan Ives says Amazon is very likely to continue its growth in the coming months and he estimates that the $1 trillion threshold could be reached in 12 to 18 months.
"The Prime membership moat that [CEO Jeff] Bezos & Co. have built is gaining further Steam in the field, and the Amazon 'flywheel effect' is further playing out globally among consumers," Ives explained.
"The Bezos strategic path, both on the consumer and enterprise fronts, [is] still in the middle innings of playing out and Amazon remains a 'green light' name to own at these levels," he said.
Apple could reach $1 trillion market cap this year as well
Amazon’s current market cap is $737.8 billion, and the analyst raised the target price of the company from $1,521 per share to $1,850. If everything goes right, Amazon should be worth more than $1 trillion in approximately one year.
On the other hand, Apple is a little closer to breaking this historical milestone, and despite the iPhone X sales that are said to be lower than estimates, the company looks set to do it with the release of an overhauled iPhone lineup in the fall.
This year’s iPhone generation is expected to include three different models, starting with an upgraded 5.8-inch iPhone X and ending with a Plus-sized model that could feature a 6.4 or 6.5-inch OLED display. Additionally, Apple is also said to be considering a more affordable iPhone with a 6.1-inch LCD panel that would be specifically aimed at upgrading more customers to latest-generation hardware, with features like the Face ID facial recognition likely to be offered.