Amazon Breaks $3T Barrier After Beating Earnings Fears
Amazon's market value crossed the $3 trillion milestone on Monday after investors reacted positively to its stronger-than-expected earnings report. The Seattle-based company reported record cloud growth and raised its annual capital spending forecast, easing concerns about its aggressive AI spending.
The stock surged nearly 5% during trading, lifting Amazon's valuation above $3 trillion. This dramatic turnaround comes after the company's shares were under pressure for much of the past three months due to investor concerns about whether billions spent on AI infrastructure would translate into profitable growth.
AWS was a key driver behind Amazon's success, with revenue rising 37% to $42.2 billion during the quarter and comfortably beating Wall Street expectations. The cloud division generated approximately 61% of Amazon's operating profit, underlining its importance to the company's earnings.