After a massive holiday quarter for Amazon (NASDAQ:AMZN), the stock of the American e-commerce company is expected to surge further in the coming months. Amazon founder and chief executive officer have recently been earning as much as $20 billion in one month just this year. Up until January, Bezos was recorded to have had a total net worth of more than $119 billion representing a rise of 20% in Amazon shares.
As early as last year, Amazon has been projected to become a $1 trillion company in terms of market value soon. This is due to the immense growth of the company last year not just in terms of sales from its online selling platform but also to its advertising and streaming business.
Analysts have noted that Amazon has been able to continually drive its high margin revenue stream business which allows the company to improve and increase its investments. Jeff Bezos’ $20 billion earnings have exceeded expectations and even surpassed Bill Gates as the second richest person in the world. Bezos earned a total of $35.1 billion last year which is close to his first-month earnings this year.
The company has now been projected to hit $1 trillion within the next twelve to eighteen months. Aside from its booming core business, Amazon’s cloud business has also shown a considerably high growth rate of 45% to more than $5 billion during the fourth quarter. Amazon’s other businesses include healthcare and its popular Alexa-powered devices.
Amazon’s acquisition of Whole Foods Market (NASDAQ:WFM) has also pushed its overall earnings and revenue higher. Despite the acquisition costing Amazon more than $13 billion, the company was still able to post lesser losses than expected during the third and fourth quarter of 2017.
In the midst of Amazon’s ongoing growth, the company has recently announced that it will acquire Ring for more than $1 billion. Ring is known as a security and doorbell camera maker. This is part of Amazon’s efforts in expanding into the home-security business. It recently acquired Blink, a company known for making smart doorbells.
Amazon’s Ring and Blink acquisition will help the company compete directly with Google (NASDAQ:GOOGL) Home as well as Google-owned Nest which is a company manufacturing security cameras, smoke detectors, and smart thermostats. Last year, Amazon revealed Amazon Key which is an in-home delivery system allowing people who deliver packages into the homes of the recipients when dropping off packages.
Amazon shares which are trading around $1,521.65 per share has been up by more than 30% this year alone. This moves Amazon closer to become the first company to have a market valuation of $1 trillion along with Apple Inc (NASDAQ:AAPL).