Amazon currently has a market cap of around $773 billion, but analysts believe that in the next four years, the retailer will surpass the $1 trillion mark. As of right now, no company has hit $1 trillion in market cap, but many believe Apple will do it pretty soon – in fact it closed at $923 billion yesterday. Other analysts believe that while Amazon may not be first to $1 trillion, they will likely be the first $2 trillion company – of course, that is a bit further down the road as of right now.
Jeffries analyst Brent Thill believes that there is still plenty of room to grow revenue for Amazon. Thill believes that Amazon's revenue will actually double over the next four years. Like many analysts, Thill believes that the main driver for growth for Amazon is going to be its advertising business. A sector that it has been expanding over the past few years. The move to online advertising platforms have also been growing greatly recently, which has allowed Amazon to grow its ad business without needing to compete too heavily with Facebook or Google, yet. By 2022, Thill believes that Amazon could reach $22 billion in ad revenue alone. That's a huge increase from the $4 billion in ad revenue it raked in last year. But it's not just about ads for Amazon, there are other areas that it could use to drive in more revenue, with the big one being Alexa. Amazon's CEO, Jeff Bezos even stated on its recent earnings call that it'll be doubling down on Alexa, after how successful it was in the previous quarter.
Amazon is currently the largest retailer in the world right now, and already have a larger market cap than the next two largest retailers – Walmart and Alibaba – combined. Which is definitely telling for Amazon, and how well it has done at serving the entire world. Amazon has forced many retailers to move to online sales, which also means smaller margins, but it does also mean more revenue than just having physical stores located across the country. Amazon is always looking to get its hands in other areas – much like Google or Alphabet – so it'll be interesting to see where Amazon is when it hits that $1 trillion market cap, which might even happen before 2022.