Amazon has knocked Microsoft off its perch to become the world’s most valuable company.
The online retail giant is valued at US $793 billion, just narrowly overtaking Microsoft which is valued at US $791 billion.
Amazon’s stock rose about 3.5 per cent on Monday, after the company revealed its robust sales during the Christmas trading period.
Google parent company Alphabet follows closely behind Amazon and Microsoft with a market value of $US747 billion.
Alphabet has overtaken Apple, which is now down to US$699 billion in market value.
Apple sparked panic on markets recently after warning that it downgraded its quarterly sales forecast, citing slow sales in China.
Scott Phillips, chief investment officer at Motley Fool, told Trading Day the Australian market tends to follow the US market moves in tech stocks.
“Tech is back in the good books of investors and traders,” Phillips said.
“That’s what driven those other companies in Australia up, there is a positive sentiment around tech now.
“But we know that when this turns, it turns hard. There are more four, five or six per cent falls on the cards the next time the US has a bit of a stutter.
“But right now, the tech growth story is in the ascendancy,” he said.