Shares in the e-commerce giant rose almost 2% to a high of $2,050.50 in morning trade before slipping back.
Apple became the first $1 trillion company last month. The share price has since dropped down, so the company was only valued at $1 trillion for a brief few minutes.
One trillion is a hard number to imagine, regardless of what's being counted. Amazon went public at $18 a share in 1997 - on Tuesday those shares hit $2,050, pushing the value of the whole company over $1trn. Its book value is greater than that of every stock market in all but 13 countries - even greater than those of Taiwan, Spain, and Italy - according to figures from the CIA's World Factbook (though several estimates are from 2015 or earlier).
However it was tech giant Apple that was named as the first publicly listed USA company to be valued at $1,000,000,000,000, on 2 August.
If the online retailer's share gains keep up the pace, it would be a matter of when, not if, Amazon's stock market valuation eclipses that of iPhone maker Apple, which reached $1 trillion on August 2. For instance, Amazon Web Services, a unit that provides hosting and cloud computing for other businesses, brought in $20 billion in revenue in 2017.
Amazon's success pushed Jeff Bezos, founder and CEO, to the top of Forbes' billionaires list this year. The 54-year-old is now worth more than $166 billion (R2,5 trillion), according to Bloomberg's billionaires index on Tuesday.
Bezos' riches have largely come through his ownership of 16.3% of Amazon's outstanding stock.
'The company continues to experiment with new products and push into new geographies.