In the latest development in the world of business, Amazon has taken over Alphabet (the parent company of Google) as the most valuable company in the world. As per the media report, Apple is the most valuable, followed now by Amazon, and then Alphabet.
On Tuesday, the market capitalization for Amazon rose to $768 billion, and that of Alphabet fell by 0.4 percent to $762.5 billion. The e-commerce giant performance has also beaten the other tech giants with its stock surging 85% over the last 12 months. It had begun 2018 with a 35% surge in the stock. As per the market pundits and investors, Amazon has greatly benefitted from its highly profitable cloud computing business, and that has and will further provide the tech-giant with the cash that it can invest in creating original content, physical stores and the further creation and development of infrastructure.
Started out with very different core businesses but now competitors
What is interesting is that Google and Amazon started with very different core businesses and hence were for a time non-competitors to one another but over the last few years, especially the development of cloud-based technology and services, both the companies have started competing on many fronts.
Leadership and business style of Jeff Bezos, a contributing factor
The success of the Amazon is also greatly attributed to the leadership style of Jeff Bezos, who is known for making big investments in the market and sticking to them. And which is why any signal of any new investment in any new business sends ripples in the sector for the competitors.
Apparently, as per this media report, in January Amazon had been looking for an alliance with Berkshire Hathway and JPMorgan Chase and invest in the sustainable healthcare business for Americans, and if an alliance does get formed then it would pose as a threat to the status quo, an example of Jeff Bezos perceived leadership style.
Currently, Amazon, like the other tech giants is hugely benefitting from its businesses operating in the emerging markets.
Microsoft is the fourth biggest company in terms of market capitalization followed by Tencent.