Amazon hits $1 trillion market cap

Amazon market cap hit $1 trillion on Tuesday, becoming the second publicly traded U.S. company to reach the milestone valuation after Apple.

Shares of the e-commerce giant rose nearly 2 percent to a high of $2,050.50 in morning trading. The stock needed a price of $2,050.27 to reach the $1 trillion mark, based on an outstanding share count of 487,741,189 shares — according to the company’s most recent quarterly report in July.

Analysts cite the company’s ever-diversifying portfolio as a value driver. Last year, Amazon launched into the grocery industry with its purchase of Whole Foods Markets. It’s rounding out its hardware and logistics segments with last-mile delivery solutions, and it’s pushing forward in advertising to challenge Facebook and Google.

“They have given investors confidence that they can go and disrupt markets just like they’ve done with retail,” Loup Ventures’ Gene Munster told CNBC’s “Squawk Alley” after the milestone stock move.

Amazon has posted particularly impressive growth in Amazon Web Services. The business segment grew nearly 50 percent in the second quarter.

“Yes, Amazon did really well in online retail, but then the stock gapped up when they showed that they could become successful in cloud,” RBC Capital Markets analyst Mark Mahaney told CNBC. “It’s almost like the ticker changed from AMZN to AWS.”

Apple reached $1 trillion in early August after posting a strong quarterly report. It took Amazon just five weeks to match the milestone.

The two tech giants had been racing to the trillion-dollar finish line. Apple had a pretty significant head start,surpassing $900 billion in market value eight months before Amazon, which reached $900 billion in July on the heels of its biggest Prime Day ever.

Amazon stock has gained more than 70 percent in 2018 and has more than doubled in the last 12 months. That dwarfs gains by the overall market, with the S&P 500 index gaining 8 percent this year and 16 percent in the last 12 months.

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