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Analyst: Amazon Will Beat Apple To Be First Trillion Dollar Value Company

Analyst: Amazon Will Beat Apple To Be First Trillion Dollar Value Company

Based on market capitalization it seems obvious to many that Apple Inc. (NASDAQ: AAPL), valued at $803 billion, will be the first trillion dollar company. But some are making the case that, Inc. (NASDAQ: AMZN), which is valued $300 billion less than Apple will reach the milestone sooner.

There is "very little to stop" Amazon's stock value from doubling to $2,000, which would imply a $1 trillion valuation, James Cakmak, an internet equity analyst ‎Monness, Crespi, Hardt & Co. said during CNBC's "Squawk Box" segment on Thursday. The reason for this is simple: Amazon's dominance in the online internet selling space continues to get bigger and better by the day given its ability to offer better prices, a better shopping experience, and perhaps most importantly, access to better data.

The only event that could stand in Amazon's way is regulators shooting down its acquisition of Whole Foods Market, Inc. (NASDAQ: WFM), but this represents a "very low risk" event, Cakmak added.

Whole Foods' revenue in the most recent quarter of $3.725 billion is roughly 10 percent of the $37.16 billion Amazon is expected to report its earnings Thursday.

However, Amazon likely has big plans for its acquisitions and could lower prices on food sales to the point where gross margins are nearly zero to entice consumers in to buying higher margin and more lucrative items, such as the prepared food market which itself is bigger than the grocery market.

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Image Credit: By SounderBruce from Seattle, United States (Amazon Books at U Village) [CC BY-SA 2.0 (], via Wikimedia Commons

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