Amazon will be the next company to hit $1 trillion in market capitalization as it produces “huge” growth in key sectors, entrepreneur-turned-venture capitalist Ann Winblad told CNBC on Monday.
Winblad, founding partner of Hummer Winblad Venture Partners, said she had expected Amazon to hit $1 trillion before Apple. But that prediction did not come to pass after Apple notched that milestone on Thursday.
The consumer tech giant had reported a strong quarterly earnings report last week.
Winblad expects Amazon to be next as it “catches up” to Google-parent Alphabet in its advertising business as well as continuing to post gains in its e-commerce and enterprise software businesses. Alphabet’s market value is more than $852 billion.
“The growth behind Amazon is huge,” Winblad, who has more than 30 years’ experience in the tech industry, told “Squawk Box.” She said Amazon is an “opaque company” and investors don’t always know the exact results the company produces from each sector.
She also said Amazon’s ad business likely benefited from Facebook‘s data privacy scandal.
Amazon last month reported better-than-expected second-quarter earnings, although revenue did come in below Street forecasts. Its profit topped $2 billion for the first time as the technology giant saw increasing benefits from its cloud and advertising businesses.
Amazon CFO Brian Olsavsky said in a conference call that those two businesses were a “big contributor” to its profit growth, as Amazon’s traditional retail business runs on thin margins.
Winblad, who founded Hummer Winblad Venture Partners in 1989, has helped launch more than 150 software companies, including Powersoft, Mulesoft and Voltage Security.
—CNBC’s Sara Salinas contributed to this report.
Originally published at CNBC