For the first time in history, shares of ecommerce giant Amazon have surpassed $1,000.
Amazon Shares Jump to a Record High of $1,000
The shares jumped to $1,001.2 before falling to $996.7. Amazon listed its shares exactly two decades ago for only $18 each.
Today, Amazon has an estimated market capitalization of $478bn, over two times that of Wal-Mart.
The company began as a bookseller but it has gradually expanded its portfolio as a retailer.
Figures from Slice Intelligence consultancy show that Amazon accounts for up to 43% of all ecommerce sales in the US.
The retailer is the fourth largest company in the US by market capitalization, with Apple, Google and Microsoft leading the pack.
At the start of the week, Google’s Alphabet, with its class A shares climbed to four figures to trade at $996, bringing the company’s worth to $681bn.
Although Amazon recorded a historic rise, the technology-focused index, Nasdaq, where Amazon belongs, ended trading 7 points down at 6,203.19.
The Dow Jones Industrial Average fell 50.81 to close at 21,029.47 while the S&P 500 index fell 2.91 points to close at 2,412.91.
According to the US Commerce Department, consumer spending saw its biggest increase in four months in April when it rose 0.4%, following a 0.3% increase in March.
Other figures showed the personal consumption expenditure rose by 0.2% in April, after falling 0.2% in March. In April, prices increased 1.7% compared to the same period last year, down from 1.9% in March last year.
The personal consumption expenditure index is the Federal Reserve’s preferred measure of inflation and does not include energy and food prices, saw a 1.5% yearly increase, lower than the 1.6% increase in March.
The Fed’s target for the PCE index is 2%. According to analysts, the US central bank will increase interest rates at its meeting in the coming month.
Last week, Amazon opened its seventh brick and mortar bookshop in New York and attracted fans who had been looking to shop in person at an Amazon shop.
Amazon’s first bookstore opened its doors in 2015 in Seattle. The retailer is planning to open up to 13 such store in the US by the end of the year. The company has also set up shop in university campuses and it is in the process of experimenting with convenience and grocery stores.
Many analysts view brick and mortar retails as a peripheral part of Amazon’s core business and will remain this way for a long time.