Amazon.com Inc. is making another run at the title of world’s most valuable company.
The e-commerce giant ended Wednesday’s trading session with a market value of $894 billion, according to the WSJ Market Data Group. That puts the Seattle-based company just $42 billion shy of Apple Inc.'s world-topping market capitalization.
Apple overtook Exxon Mobil Corp. in 2011 to claim the title of world’s most valuable company. The iPhone maker and oil giant swapped positions a few times in the following years before Apple retook the top spot in 2016.
But Amazon’s share-price surge in recent months is threatening to unseat Apple. Amazon’s stock is up 80% over the past year, while Apple shares have gained 27%. Both are far outpacing the S&P 500’s 14% gain over that period.
As The Wall Street Journal’s Markets newsletter noted on Thursday, Amazon's outperformance illustrates investors' different expectations for the two tech-focused behemoths.
Apple has posted strong revenue and profit growth but is facing questions over demand in its core iPhone business.
Amazon, meanwhile, has aggressively pursued growth at the cost of profits and has become synonymous with the disruption of industries ranging from retail to groceries.
Amazon first began to encroach on Apple in April, when it got within $35 billion of the tech giant before pulling back.
Upcoming earnings reports could serve as the catalyst for the two companies swapping places. Amazon’s results are expected July 26, and Apple will report its earnings about a week later on July 31.
Amazon is expected to report second-quarter earnings jumped to $2.47 a share from 40 cents a year earlier and sales growth about 40%, according to FactSet data. Apple’s earnings are expected to rise to $2.16 a share from $1.67 a year earlier, while revenue is expected to rise 15%.
But as Netflix Inc.’s second-quarter earnings showed earlier this week, Amazon’s stock could pay the price if the company doesn't live up to Wall Street's lofty expectations.
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