Customer-centric Amazon ‘deserves its success’, GlobalData
Amazon has joined Apple in the exclusive $1 trillion club, albeit briefly.
The e-commerce giant jumped above a trillion dollar market cap on Tuesday during intraday trading. The share price then bounced around and dropped below that number, although it will inevitably rise above the milestone in due course.
“To reach a market capitalisation of over $1 trillion is impressive. To do it in a little over 24 years is extraordinary,” says Neil Saunders, Managing Director at GlobalData Retail. “That Amazon has achieved this demonstrates its dramatic advancement in both the retail and technology sectors, as well as the influence it now wields over large parts of the consumer landscape.”
The valuation, he adds, also reflects the forward potential of the company. Despite its size and scale, there is still something young about the company. It might be mature in a sector like books and media, but in categories like grocery and home furnishings, Amazon is really only just getting started. The same applies to geographic expansion; there are many global pockets of demand that it has yet to fully tap into.
“Over time, we have no doubt that Amazon will potentialise all of these opportunities,” says Saunders. “We also believe it will move more heavily into new areas like pharmacy and healthcare. Its future success will be predicated on the same basis as its past victories: finding innovative ways of delivering on customer's needs and identifying unique ways of solving their problems. In our view, Amazon is a very customer-centric retailer that has earned and deserves its success.”