Amazon on Tuesday became the second U.S. company to reach a market value of more than $1 trillion, trumping criticism from both ends of the U.S. political spectrum.
The Seattle-based e-commerce giant joined Apple in the rarefied market capitalization briefly, when its stock rose above $2,050 in New York trading. Amazon’s monumental growth has reshaped the U.S. retail industry and its expansion into health care and other sectors is forcing competitors to rethink their business strategies.
President Trump, however, has made the company a perennial target, claiming that the U.S. Postal Service is subsidizing Amazon’s package deliveries and criticizing founder Jeff Bezos, who separately owns the Washington Post. The outlet’s unflattering coverage of the White House has placed it among media organizations that the president regularly describes as “fake news.”
Trump said last month that Amazon and other large U.S. corporations could be engaged in anti-competitive behavior, though he stopped short of suggesting that they be broken up. One-time Democratic presidential candidate Bernie Sanders, meanwhile, has accused Bezos of underpaying Amazon workers, seizing on findings that thousands of employees rely on a federal food assistance program.
Despite those pressures, Amazon’s success is undeniable. Companies like Walmart and Target are revamping how they deliver products to customers to compete against Amazon’s Prime service, which offers subscribers free, expedited shipping.
The company’s purchase of Whole Foods led the grocery chain to introduce same-day deliveries and discounts for Prime members, and competitor Kroger recently expanded its home-delivery service. Activist investor Carl Ichan, meanwhile, cited Amazon’s purchase of a drug-delivery company to support his position that Cigna was overpaying for its $60 billion purchase of Express Scripts, a stance he later reversed.
