Amazon Briefly Tops $3 Trillion Market Capitalization Amid AWS Boom
Amazon's market capitalization reached $3 trillion for one session on August 3, joining Apple, Microsoft, Nvidia, and Alphabet in this elite group. The stock closed Tuesday at $277.42, down $6.60 or 2.32% from Monday's $284.02. Amazon's valuation now carries a normalized price-to-earnings ratio of 38.74.
The company reported a second-quarter net sales figure of $200.61 billion, up 20% from the same period last year. This is the first quarter in Amazon's history to reach above $200 billion. Operating income climbed 43% to $27.46 billion from $19.2 billion.
AWS revenue grew 37% year over year, the fastest growth rate in 18 quarters. AWS operating income reached $16.62 billion, up from $10.2 billion a year earlier, producing an operating margin of 39.4%. The annualized run rate now stands at $169 billion.
The market accepted Amazon's third-quarter guidance, which implies 9% to 12% growth against a base of roughly $180.7 billion. However, the reported net income for the quarter was heavily influenced by a $53.4 billion pre-tax non-operating gain attributed primarily to Amazon's investment stake in Anthropic.
This gain equals 85.3% of the reported $62.6 billion net income figure and is an accounting revaluation of a privately held equity position. Adjusted earnings of $1.97 per share represent 34.3% of the $5.75 headline, and the remaining 65.7% is the after-tax effect of that mark.