July 10, 2019–Online retail giant Amazon.com reached new heights today as its stock rose above 2,000 on the NASDAQ stock exchange.
Just a week before company executives are scheduled to appear before a congressional committee investigating the dominance of top tech companies, the stock price reached a new high, reflecting the company’s massive scale.
The mile-marker in the company’s stock price came amid peaks U.S. equities after Federal Reserve chairman Jerome Powell suggested the Fed might cut interest rates.
It also comes as tech giants enter the field of finance, posing new risks to consumers, traditional banks and financial markets.
Amazon Stock: From $324 in 2014 to $2,024 Today
Amazon Sales & Revenue
Though Amazon does not pay a dividend and is priced at 84 times above its earnings, its stock price soars above others in the field. Investor sentiment remained positive that the internet giant would continue to grow. Its revenue leaped from $89 billion in 2014 to $233 billion in 2018. Meanwhile, its sales this year are already up 14 percent.
Fierce Competition
Market research firm Morningstar views Amazon as “the most disruptive force” in retail.
The company not only dominates online retail, its presence forced many brick-and-mortar retail stores out of operation. Circuit City, Linens ‘n Things, Borders, Toys R Us, and Radio Shack shut down. Meanwhile, Amazon is posing a challenge to traditional grocery stores with its $13.7 billion acquisition of Whole Foods.
Its operational efficiency, large customer base and distribution network give it “competitive advantages that traditional retailers cannot match,” Morningstar analysts reported in June.
Government Oversight
It’s no wonder that the increasing market dominance of companies like Amazon, as well as Apple, Facebook and Google, is attracting more and more attention by governments in the European Union and United States.
Next week, a U.S. House antitrust committee is set to examine the impact the tech companies have in their markets. No word yet on who will testify at the July 16 hearing.
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