Amazon Breaks $3 Trillion Mark on Strong AWS Earnings
Amazon's market value crossed the $3 trillion mark on Monday after investors rewarded the company for its stronger-than-expected earnings report. The report reinforced the view that artificial intelligence spending is generating meaningful returns through Amazon Web Services (AWS).
The e-commerce and cloud giant's shares climbed nearly 5% during trading, lifting its valuation above the milestone. This move capped a dramatic turnaround for Amazon, which had seen its shares under pressure for much of the past three months due to concerns over AI spending.
Those concerns eased sharply after AWS reported its strongest cloud growth in more than four years, with revenue rising 37% to $42.2 billion during the quarter. The company's chief executive Andy Jassy said 'AWS is booming', highlighting the division's importance to the company's earnings and its annualized revenue run rate of $169 billion.
Wall Street remains broadly optimistic about Amazon's long-term prospects, with an average analyst price target implying about 14% upside from current levels. The company has continued to invest aggressively in artificial intelligence infrastructure, with recent investments including up to $50 billion in OpenAI and Anthropic.