Amazon and Google have been fighting for a while now, with the tech giants taking turns to perform acts of pettiness against each other. But Jeff Bezos might have been feeling more satisfied than usual yesterday, after his firm surpassed Google parent Alphabet to become the world’s second-largest company in terms of market capitalization.
Amazon’s shares finished up 2.69 percent on Tuesday at $1586.51. Thanks to its ever-growing cloud services arm and expanding grocery business, stock has risen about 35 percent this year and 85 percent over the last 12 months. The company is now valued at around $768 billion.
Alphabet, on the other hand, has been affected by the fallout from Facebook's Cambridge Analytica scandal. Both are industry leaders when it comes to online advertising, and the controversy could lead to tighter regulations over how user data is handled, which is worrying investors.
The company is also still tarnished by its admission that Russia bought ads on properties such as YouTube in an attempt to influence the US election. As such, its shares have fluctuated while Amazon's have grown. Alphabet's value was at $762 billion yesterday after it lost 0.39 percent.
Amazon and Google have a number of competing products, including smart speakers and cloud services. The retail giant doesn’t sell Google hardware like its Home speaker or Pixel smartphones, though the handsets are available through third-party sellers.
Earlier this month, it was revealed that Amazon wouldn’t stock any future products from Nest, which rejoined Google in February. The move came after Google’s decision last year to stop the Echo Show and Fire TV from accessing YouTube over claims Amazon was violating the terms of service.
The only company now above Amazon is Apple, which has a market capitalization of $892 billion. Microsoft sits behind Alphabet in fourth place with a $720 billion valuation. Facebook has dropped to seventh, having lost 9 percent of its market capitalization in the past two days
Graph via 9to5Google