Amazon's market value has eclipsed that of Alphabet Inc. as shares of the giant online retailer closed up 2.7 percent after market trading on the New York Stock Exchange closed on Tuesday. The rise of its share price means Amazon's market value rose to $768 billion, exceeding that of Google's parent company which was valued at $762.6 billion at the close of trading. Amazon's market value also meant it was trailing behind Apple Inc., which is currently the world's most valuable publicly traded company.
More to the point, Amazon's dramatic growth in market value highlights the success of the company's strategy to diversify its business and enter new markets including health insurance and groceries on top of its existing business in the areas of cloud computing and e-commerce. Amazon has been reportedly exploring medical technologies ranging from record keeping to over-the-air doctor visits and diagnostics through a secretive project lab called 1492. According to industry sources privy to Amazon's plans, the goal of the project is to make telemedicine, which involves virtual meetings and consultations with doctors using communication tools. Earlier last month, the company also ventured into the grocery segment as its Whole Foods Market grocery delivery reached select markets such as Austin, Dallas, Cincinnati, or Virginia Beach, where Amazon now delivers grocery items from Whole Foods within two hours after an order worth at least $35 has been placed.
The recent trading result also marks a growing rivalry between the two tech behemoths as both Amazon and Alphabet's Google aim to dominate a vast range of markets including the voice-activated smart speaker category. Currently, this segment is dominated by the Alexa-powered Amazon Echo range of smart speakers, though Google is reportedly catching up with its Google Assistant-powered Google Home devices, according to a recent report from Zion Market Research. On the other hand, Google still leads the digital advertising business, though that landscape might change in the future as Martin Sorrell, Chief Executive Officer of WPP, the world's leading advertising holding firm, recently said Amazon's advertising business is threatening Google's dominance in the future. Also, a recent annual survey of 25,800 adults in the United States concluded that Amazon is the top company in terms of corporate reputation, while Google dropped to the 28th place from the 8th spot last year.