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00:00:01
>> In the race to a trillion dollar valuation, Apple is getting some real competition. On Wednesday, Amazon, hitting the $900 billion mark for the first time, after announcing it sold more than 100 million in products during it's annual shopping event Prime Day, narrowing it's valuation gap with Apple, the world's most valuable publicly traded company.
00:00:23
Reuters' Noel Randewich has been following the race between Apple and Amazon.>> Investors generally calculate market capitalization by looking at a company's outstanding shares, multiplying that by the current share price. The companies only report how many shares they have outstanding at the end of the quarter when they gave their quarterly results.
00:00:43
In reality, the number of shares outstanding can change during the quarter.>> In the March quarter alone, Apple bought back $23 billion worth of shares, it's unclear how much more it purchased in the June quarter, but that would reduce the number of shares and it's real valuation could be less than the nine hundred thirty five billion dollars seen on the trading screens.
00:01:05
>> At the same time, Amazon very regularly over the last couple of years has issued shares every quarter, because Amazon used their shares to compensate it's employees, that means that overall, the gap between Apple's market capitalization and Amazon market capitalization might be smaller than it looks.>> Amazon stock has soared this year, up nearly 60% so far, Apple on the other hand, is up a mere 12% so far this year.
00:01:34
>> Apple is an extremely profitable company, but it stopped growing as quickly as it did during those peak years after the iPhone was introduced in 2007. At the same time, Amazon is really, really, it's still in strong growth mode. It not only dominates its own market, but it's constantly expanding into new markets.
00:01:54
>> Apple took the helm of the stock market from Exton Mobile in late 2011, now it may be seating that position to Amazon.