Amazon Hits $3 Trillion Market Value Milestone Amid AI Spending Concerns

Amazon has reached an unprecedented milestone by surpassing $3 trillion in market value. This achievement puts Amazon alongside Nvidia, Alphabet, Microsoft, and Apple as the only companies to have reached this size. The e-commerce and cloud-computing giant's shares rose as much as 5.3% after a strong second-quarter earnings report showed accelerating cloud-computing revenue.

The company had been struggling in recent months due to investor concerns over its AI spending commitments. However, the latest earnings report eased these fears, with Amazon Web Services unit revenue jumping by the most since 2021. This propelled shares up over 15% in a single day, adding nearly $400 billion in value.

Despite this significant gain, Amazon's valuation is still below its historical average. The stock trades at around 25 times forward earnings for the next 12 months, which is about 44% cheaper than its average over the last decade.