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Amazon vs Facebook: Battle of the powerhouses

Amazon’s market value raised this year up to $360 billion, and Facebook climbed until achieving a market value of $357 billion. Both companies are now in the race to become the biggest company based on the U.S. Which company will have more significant market value shortly is still uncertain.

Berkshire Hathaway Inc. (BH), an American multinational holding company, run by billionaire Warren Buffet, was displaced as the fifth biggest company, based on its market valuation.

Both Amazon and Facebook are constantly looking for market opportunities and exploring new projects that make them bigger. Image Credit: Engadget

The established competitor who was left behind

BH, founded 177 years ago, owns 26 percent of Kraft Heinz Company, as well as percentages of major companies such as American Express, Wells Fargo, Duracell, Mars, IBM, The Coca-Cola Company and owns completely some other big corporations, like Dairy Queen and Fruit of the Loom.

The company was in the fifth position in the lists of the largest enterprises in the U.S. but now, due to the massive growth of Facebook and Amazon, has dropped to seventh place with only one billion under Facebook’s value.

The companies that are still ahead

Apple Inc, Microsoft, and Alphabet are above Amazon Inc.  Apple Inc is at the top of the list with a stunning market value of $597 billion.

Alphabet, on the other hand, is the parent company of Google and some other tech companies. It was founded by Larry Page and Sergey Brin,  both Google co-founders. Alphabet Inc. is a holding company founded to run different branches of Google independently, as well as managing certain internet products non-related to Google. The company has a stable market value of $514 billion.

Exxon Mobil is in the sixth position and one spot over Facebook, and the market value of the multinational oil and gas corporation has significantly dropped due to crash in profits. A 59 percent drop made the giant lose $1.7 billion. Wall Street watched the crash with surprise even when analysts had predicted a significant loss in the value of Exxon. This crash allowed Amazon to climb in the market.

Innovation that adds value

Facebook has the record on users’ subscription, with almost 2 billion monthly users, who are always receiving new products and services within the platform to keep them interested.

Facebook has also increased its value through the constant release of mobile apps, being Messenger, the instant messaging app, its most competitive product. Buying Whatsapp, Instagram, and Oculus Virtual Reality also added value to the net profit of the corporation. Facebook also released some social platforms to encourage technology and science education among minorities.

Amazon has also been working on several projects, such as drone deliveries and Prime Day. Amazon Web Services, a cloud-computing unit created by the Amazon,  have reported a level of profitability that allowed the company to make even bigger investments to raise its net profit. Amazon’s shares are traded at $767,80. Kindle products and the Kindle Store has also been adding value to the net profit.

Other services like Kindle products and the Kindle Store, as well as Amazon Dash, Amazon Primer Air, Amazon Prime, Audible.com, Goodreads, and ComiXology have also been adding value to the net profit of the company.

Source: CNN

Categories: Technology
Geraldine Chacon:
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