Amazon could become the first company with a $1 trillion market cap, beating other tech giants like Apple and Google, NYU professor Scott Galloway said on Recode's podcast on Monday.

Galloway explain that America is facing "a great unwinding of retail," that results from stagnant wages in the middle class, too many retail stores in the country and customers who prefer to purchase experiences or shop on Amazon. "You have this perfect storm of bad things and the reckoning is here," said Galloway, who also is also the founder of L2, a firm that tracks digital performance of brands and provides research for marketers.

Those factors could set Amazon up to become one of the few winners in the retail sector moving forward, and will contribute to its record-breaking market cap rates. "Amazon is conspiring with 600 million consumers, infinitely cheap capital offered by fanatical groupie-like investors and incredibly deft execution and understanding of technology," Galloway added. "They have collaborated with all these entities to basically starch the margin out of brand and retail, and they are doing it pretty effectively.

Amazon will continue to be a winner in the sector--along with small businesses, Galloway tells Inc. "Exceptional little players," like independent beauty companies, are also performing well because customers are "confident buying unknown brands more than we were 10 years ago," he says, giving much credit to platforms like Instagram and Google, which host promotions and validations of products that used to only get similar publicity from working with bigger brands.

Published on: Jun 12, 2017