Blockbuster earnings pushes Amazon to become the 2nd most valuable US company

In 2019, Amazon became the most valuable US company with a $792 billion market capitalization. Later, Amazon lost its position to Microsoft and Apple. For the past several months, Apple was the most valuable company in the US followed by Microsoft. Amazon yesterday released its quarterly earnings report. Thanks to blockbuster earnings, Amazon has now become the 2nd most valuable company in the US with 1.59 trillion market capitalization.

Amazon’s sales grew to $88.9 billion, up 40% YoY, and delivered $10.30 EPS with profits increasing 100% from $2.6 billion to $5.2 billion. AWS revenue was around $10 billion and it was up 29%.  The company has beat analyst expectations of $81.53 billion in revenue and $1.46. EPS.

Yesterday, Apple also announced its quarterly earnings report. Apple surprised everyone by reporting sales growth in every market and every product category. Apple posted quarterly revenue of $59.7 billion, an increase of 11 percent from the year-ago quarter, and quarterly earnings per diluted share of $2.58, up 18 percent. Apple’s hardware sales all did well, and even iPhone sales saw a 1.7$% YoY growth. The star of the show was, however, Mac and iPad sales, with Mac sales up 21.6% YoY and iPad sales up 31%, due to the Work from Home push.

The stock market is really happy with Apple’s numbers as the stock price is already up 5.93% today. With this increased stock price, Apple’s market capitalization is now at a staggering $1.77 trillion. I think Apple will become the first company to touch the $2-trillion market capitalization before the end of this year.