$3 Trillion Club: Amazon's Market Cap Surges on AWS Growth
Amazon's market capitalization surpassed $3 trillion for the first time on Monday after its second-quarter earnings report exceeded Wall Street expectations. The company's shares rose about 4% to a new all-time high, their strongest performance since early May.
The rally was driven by Amazon Web Services (AWS) growth, which generated $42.2 billion in revenue during the quarter, significantly ahead of analysts' expectations of $40.54 billion. AWS is Amazon's cloud computing platform that captured investors' attention as it reflected accelerating demand from businesses investing heavily in AI applications, data processing, and cloud infrastructure.
Amazon CEO Andy Jassy announced that the company is raising its capital expenditure forecast for the year to $220 billion, an increase from the $200 billion projection provided in February. Much of this spending will go toward expanding data centers, networking equipment, and AI computing capacity as Amazon scrambles to keep pace with customer demand.
Jassy indicated that supply constraints will continue well into the future, stating 'we will still not have enough capacity to meet all the demand we have in 2026, and I believe this dynamic will also be true in 2027 too. In fact, the demand we already have for 2028 is striking.'