① Amazon shares rose during early U.S. trading hours, pushing the company’s market capitalization above $3 trillion for the first time, making it the fifth publicly listed company globally to reach this milestone; ② AWS, Amazon’s cloud computing segment, reported a 37% year-over-year increase in revenue for Q2, marking an 18-quarter high, with Wall Street broadly optimistic about its long-term outlook.
Caixin Global, August 3 (Editor: Zhao Hao) – During early U.S. trading on Monday, August 3, Amazon shares surged, driving the company’s market capitalization above $3 trillion for the first time and making it the fifth company worldwide to achieve this milestone.
Market data showed that Amazon (ticker: AMZN) shares rose by more than 5.7% at one point, reaching an intraday high of $287.16, extending the strong rally following last week’s earnings release. As of the time of reporting, the stock was trading at $285.58, giving the company a market capitalization slightly above $3.07 trillion.
This means Amazon has joined NVIDIA, Alphabet (Google’s parent company), Microsoft, and Apple as one of only five publicly traded companies currently valued at or above $3 trillion.
Vertically speaking, Amazon took just over two years to grow its market capitalization from $2 trillion—first reached in June 2024—to $3 trillion. In contrast, it took more than six years to grow from $1 trillion (first achieved at the end of 2018) to $2 trillion.
Notably, peers in the cloud computing sector also saw broad gains, with Microsoft and Amazon each rising nearly 5%, CoreWeave climbing over 10%, NEBIUS gaining more than 7%, and IREN up over 5%.
For much of the past three months, Amazon’s share price had weakened noticeably as investors grew concerned about the cost pressures faced by companies investing billions of dollars into artificial intelligence (AI) development.
However, Amazon’s latest earnings report alleviated these market concerns. The data revealed that AWS revenue surged 37% year-over-year in the second quarter—the highest growth rate in 18 quarters.
In its earnings release, Amazon also raised its full-year 2026 capital expenditure guidance and offered an optimistic view on AI’s long-term revenue potential, stating that demand for AI computing power continues to outstrip supply—a supply-demand gap that could persist through 2028.
The recent rally has lifted Amazon’s year-to-date gain to over 23%, once again making it the top performer among the ‘Magnificent Seven.’ By comparison, the Roundhill Magnificent Seven ETF (MAGS) has gained only about 3% over the same period, while the S&P 500 index is up approximately 10%.
Although recent gains have lifted Amazon's valuation from the 17-year low reached at the end of March, it remains significantly below its historical average. Currently, Amazon's forward price-to-earnings ratio for the next 12 months stands at approximately 25x, about 44% below its average over the past decade.
Wall Street is also broadly optimistic about Amazon's long-term outlook. According to compiled data, the average analyst target price implies that Amazon’s stock has roughly 14% upside potential over the next year.
Editor/Liam