$3 Trillion Club: Amazon Soars as AI and Cloud Growth Fuel Rally
Amazon has surpassed $3 trillion in market value for the first time, driven by strong earnings and increased demand for its cloud computing services. The company's stock surged 15% on Friday after it reported its strongest cloud growth in over four years and raised its annual capital spending forecast.
The e-commerce giant's market value has doubled in just two years, reaching $3 trillion for the first time since June 2024. This milestone is a significant achievement for Amazon, which is one of only two companies from the 'Magnificent Seven' group to have seen AI spending pay off in investors' eyes.
Amazon's investment in Anthropic and its plans to invest up to $50 billion in OpenAI are part of its efforts to build out its AI infrastructure. The company is pouring billions into AI, along with other tech giants like Microsoft and Alphabet.