Amazon Breaks $3 Trillion Valuation Milestone Amid Cloud Growth

Amazon's stock price surged nearly 5% on Monday as its market value broke through the $3 trillion threshold for the first time. The e-commerce and cloud-computing giant reached an intraday record high of approximately $286.90, following a 15% gain on Friday.

The company's cloud-computing arm, Amazon Web Services (AWS), saw revenue increase by 37% in the second quarter, driven by customer demand for cloud and AI services. This growth has led to an expansion of planned infrastructure spending, with Amazon committing to invest as much as $220 billion through 2026.

Chief Executive Andy Jassy attributed this increased spending to existing customer demand, stating that much of the cloud capacity scheduled for 2027 and some capacity planned for 2028 had already been reserved. The company's investment in Anthropic and its commitment to putting up to $50 billion into OpenAI have also contributed to its growth.

Amazon's market value surpassed $2 trillion just over two years ago, with the additional $1 trillion reflecting investors' willingness to reward infrastructure spending that drives visible cloud growth. The company joins a select group of companies, including Apple, Microsoft, Alphabet, and NVIDIA, which have previously reached a $3 trillion valuation.