$3 Trillion Milestone: Amazon Joins Elite Club of Tech Giants

Amazon has become the fifth company to reach a market value of $3 trillion, surpassing this milestone for the first time. The e-commerce and cloud-computing giant's shares rose as much as 5.3% on Monday morning, building on last week's rally after it reported accelerating revenue growth in its cloud-computing unit.

The company joins Nvidia, Alphabet, Microsoft, and Apple in this exclusive club. Amazon's stock had been lagging behind its peers in recent months, dropping nearly 18% between May 6 and late March due to investor concerns over AI spending commitments. However, last week's earnings report showed a significant jump in AWS revenue, driving the stock up by more than 15% - its biggest one-day increase in over 14 years.

This surge has propelled Amazon to become the best-performing 'Magnificent Seven' stock this year, outpacing its tech peers. Despite reaching $3 trillion in market value, Amazon's valuation is still below historical levels, with a price-to-earnings ratio of around 25 times forward earnings for the next 12 months - about 44% cheaper than its average over the last decade.