$3 Trillion Club Member Amazon Poised to Reach $5 Trillion by 2029

Amazon has joined the exclusive $3 trillion club and is poised to reach $5 trillion by 2029, according to recent earnings results.

The company's cloud computing platform, Amazon Web Services (AWS), drove revenue growth of 37% year over year, marking five consecutive quarters of accelerating revenue growth for the segment.

AWS revenue growth was bolstered by artificial intelligence services and custom silicon offerings, including Trainium chips. The deals with OpenAI and Anthropic will provide AWS with contracted revenue worth $496 billion, ensuring continued growth.

Amazon's core retail business also experienced double-digit growth, driven by its advertising business and improvements in logistics networks.

However, investors may be cautious due to the massive capital expenditures required to meet growing demand for compute resources, which could push Amazon's free cash flow into negative territory.