Amazon Joins $3 Trillion Club: Stock Surges 4% on Cloud Blowout, Becomes Fifth Company to Hit Milestone

Amazon's market capitalization crossed $3 trillion for the first time on Monday, August 3, as shares climbed 4% to close above $285 following blowout Q2 earnings. Amazon Web Services revenue hit $42.2 billion, crushing the $40.54 billion Street estimate, while total company revenue reached $200.61 billion versus the $196.47 billion consensus. Adjusted earnings per share came in at $1.97, beating the $1.82 estimate. The gain marked the stock's best single session since May 5, and Amazon has now gained more than 23% year-to-date. CEO Andy Jassy told investors that capital expenditures are now projected to reach $220 billion this year, up from the prior $200 billion estimate, adding that even at that level the company will not have enough capacity to meet all AI-driven demand in 2026 or 2027. Amazon joins Nvidia, Alphabet, Microsoft, and Apple as the only companies to ever reach a $3 trillion valuation, with Nvidia currently holding the top spot approaching $5 trillion. The move from $2 trillion to $3 trillion took just over two years, far shorter than the more than six years required to move from $1 trillion to $2 trillion. Some of Amazon's biggest cloud rivals also saw major growth in their divisions, with Microsoft Azure cloud revenue rising 43% during the fiscal fourth quarter and Google Cloud reporting 82% growth. Roth Capital hiked its price target on Amazon to $325 from $300 following the results. Amazon finalizing its $50 billion OpenAI investment also contributed to the AI trade returning with renewed momentum.