Watch out, Apple: Amazon could be worth $2.5 trillion by 2024

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Amazon beats Apple and Google to be named 'most valuable' brand
Amazon CEO Jeff Bezos has a lot to be cheerful about!
Photo: Steve Jurvetson/Flickr CC

Apple may have pipped Amazon to the post by being the first company to hit $1 trillion (despite some predictions to the contrary), but Amazon has nothing but good things in its future.

According to a new report from MKM Partners, by 2024 — roughly five years from now — Amazon could be valued at a whopping $2.5 trillion. Amazon Web Services alone could, meanwhile, be valued at a whopping $1 trillion, approximately the same valuation Apple holds today.

“We still think that AMZN is the best long-term growth investment available to investors today,” MKM’s Rob Sanderson wrote in a note to clients. He raised his 12-month price target for Amazon from $1,840 to $2,215.

Sanderson suggests that, by 2024, Amazon will control 14.5 percent of the U.S. retail market. That will put it above Walmart.

Amazon vs. Apple: Clash of the titans

Unfortunately, Sanderson doesn’t offer any comparisons to where he thinks Apple might be at that time.

So far this year, Amazon has slightly outpaced Apple on overall growth, despite Apple being the one to pass the trillion dollar milestone. Apple started the year trading at $172.26 and is now valued at $215.05. This equates to an approximately 25 percent increase. Amazon, meanwhile, started the year at $1,189.01 and is now trading at $1,904.90, or an approximately 38 percent increase.

A lot can change in tech but, should those trajectories continue, Amazon will overtake Apple at some point in the near future.

Here’s an interesting factoid, though: Despite Amazon’s higher stock price, Apple earned more in three months this year than Amazon has in its entire existence. Pretty mindboggling, right?

The big question is whether Amazon and Apple will remain on the same page, or whether at some point we’ll see a more direction battle between the trillion dollar (or soon-to-be-trillion dollar in Amazon’s case) giants!

Source: CNBC

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