Amazon Dethrones Microsoft, Becomes World’s Third Most Valuable Company

In Amazon's latest conquest, the company has toppled Microsoft to become the third most valuable company in the world. The online retailer's stock closed up $36.54 a share, or 2.6 percent, at $1,451.05 on Wednesday, giving the company a market capitalization of $702.5 billion, enough to top its Seattle-area neighbor for the first time.

Microsoft's market value stood at $699.2 billion, after its shares rose $1.40, or 1.6 percent, to $90.81 Wednesday.

Combined, all other public companies based in Washington state have a market capitalization of only about $400 billion. Chicago-based Boeing has a market value of $205 billion.

Amazon trails only Apple, worth $849.2 billion, and Google parent Alphabet, at $746.4 billion, among publicly traded companies as of Wednesday's close.

Amazon has nearly quadrupled in value over the last three years, a surge that made founder and chief executive Jeff Bezos [pictured here] the world's richest man, displacing his Medina neighbor, Microsoft co-founder Bill Gates.

The gains came as investors bet that the company would continue its track record of grabbing an ever larger share of commerce. Amazon's revenue has grown by at least 19 percent each year for the last decade, a record unmatched among companies with sales of more than $1 billion.

It took Amazon 21 years to close the gap between an upstart online bookseller and one of the world's dominant high-tech firms.

Amazon.com shares surged on their first day of public trading in May 1997, valuing the company at $560 million, according to S&P Capital IQ.

Microsoft then was a $140 billion giant, dominant in the fast-growing personal computer market and in command of an ample war chest to fund forays into new technologies. The Redmond company's market capitalization would crest at $614 billion, a record for any company at the time, at the height of the dot-com boom in December 1999.

The company's...

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