Internet retail giant Amazon, which launched in 1995, is now America’s most valuable retailer. In late July its market capitalisation hit $259bn after the stock jumped by 15%, thanks to an unexpectedly strong second quarter. That propelled it past Walmart, then valued at around $230bn. A gradual shift among consumers to online shopping, and the firm’s willingness to forego profits to invest in further expansion, have underpinned its success.
Amazon has racked up cumulative sales of $409bn since its arrival on the retail scene, but has announced just $1.96bn of net income. Walmart still sells far more: in the year to the end of January, revenue hit $485bn, compared with Amazon’s $89bn last year, while net income was $16bn. But this milestone marks the coming of age of a technology darling – not least because Facebook’s market cap also overtook Walmart’s this year.