Amazon Smashes $3 Trillion Market Cap Barrier

Amazon's stock price hit a record high of $287.16 on August 3, making it the fifth company in history to surpass a $3 trillion market capitalization.

The e-commerce giant's earnings report showed AWS's second-quarter operating margin was as high as 39%, with customers scrambling to lease chips and computing equipment from them due to high demand.

Amazon CEO Andy Jassy noted that the company takes less than three years on average to recoup its costs for purchasing computing equipment, while most of the computing contracts signed with AI customers are for more than five years.

This means that the second half of these long-term lease contracts consists entirely of pure profit 'cash cows,' according to Jassy.