Naperville Business Lawyer Discusses America’s Second Trillion-Dollar Company

Amazon, Naperville business law attorneyDetermining the true market value of a given company is among the most complex calculations in all of the business world. There are many different ways to value a company, but they all boil down to a simple premise: bigger is better—at least in terms of stability and productivity.

As a business law attorney, I help business owners throughout Northern Illinois in determining how much their companies are worth. Doing so is important for the purposes of obtaining capital for improvements, attracting investors, and long-term strategic planning. Sometimes, a valuation is also good for a headline such as this: “Amazon Join Apple as Only U.S. Trillion-Dollar Companies.”

An Impressive Achievement

Shortly before noon Eastern Time on Tuesday, the price of an Amazon share rose to $2,050.49 before dropping back down slightly. The increase pushed the company’s value over the $1 trillion mark for a short time. Apple became the first U.S. company to cross the trillion-dollar threshold last month, and the computer giant is currently valued at about $1.1 trillion. Together, the two companies represent a full 8 percent of the S&P 500’s entire value.

Financial experts have long criticized Amazon founder and CEO Jeff Bezos for the company’s tendency to spend too much while earning too little. Bezos, whose personal net worth is estimated to be nearly that of Bill Gates and Warren Buffett put together, seems to have been doing something right. Amazon currently takes in 49 cents of every e-commerce dollar spent in the United States. The company employs more than half a million people and generates $178 billion in annual revenues—an estimated $2 billion of which is profit.

Wall Street has been very impressed with Amazon’s diversity in recent years, as Amazon Web Services has continued to grow. The introduction of the cloud-based voice service known as Alexa positioned Amazon as a leader in smart home technology.

An Unbelievable Comparison

Amazon is obviously much more than just an online retailer, but a comparison of the company to its brick-and-mortar competitors is quite telling. It would take the combined market value of the top 14 big-box stores—starting with Walmart and ending with AutoNation—to reach $1 trillion (using 2017 revenues.)

Many experts—including some who have been skeptical of Amazon in the past—predict that the company’s value will continue to grow. Some have even suggested that Amazon could double in value again by 2020.

Increasing Your Company’s Value

There are many different ways that you can help to improve the market value of your company, and an experienced Naperville business law attorney can assist you in exploring your options. Call 630-756-1160 for a confidential consultation at The Gierach Law Firm today to discuss your situation. Let us put our knowledge and skills to work for you.

Sources:

CBS News

CNN Money

The New York Times