Amazon.com Inc. has become the second U.S. Company after Apple to reach $1 trillion in market value.
Shares of Amazon climbed 1.9% in midday trading on Tuesday, topping the $2,050.27 needed to push the company’s value above $1 trillion.
The stock has surged 75% in 2018 and added more than $435 billion to the company’s market capitalization—roughly the size of Walmart Inc., Costco Wholesale Corp. COST +0.34% and Target Corp. TGT 0.82% combined.
Investors have rewarded the Seattle-based company as it demonstrated better financial discipline in recent quarters, reporting record profits because of lucrative businesses such as cloud computing despite aggressively spending on industries from health care to grocery delivery.
“They’ve proven they can make it work,” said Michael Lippert, who manages the Baron Capital BCAP -98.00% Opportunity Fund that counts Amazon as its largest holding. “They’re spending a lot on all these things to build and enforce their competitive advantages.”