Amazon on Track to Join Trillion-Dollar Club

Amazon's market capitalization is currently around $2.75 trillion, making it the world's fifth-largest company.

The tech giant has been a laggard over the last five years, with its stock up only 47% compared to the S&P 500's 69% gain and the Nasdaq Composite's 71% gain during that period.

However, despite underperforming the broader market, Amazon is positioned for significant growth due to its strengths in cloud infrastructure and e-commerce.

The company's Amazon Web Services (AWS) segment grew sales 37% year over year to reach $42.2 billion in the second quarter, with AI-related demand driving the unit's strongest growth rate since 2021.

To hit a market cap of at least $4 trillion by 2029, Amazon would need to increase its stock value by roughly 45.5%, which translates to average annual growth of 20.6% over the next two years.