Amazon Soars Past $3 Trillion Mark Amid AWS-Fueled Recovery

Amazon's stock price surged by as much as 5.3% on Monday, reaching a market capitalization of $3 trillion, making it the fifth business to achieve this milestone.

This significant jump comes after Amazon's second-quarter report showed cloud revenue growth picking up, easing concerns about heavy AI spending and lifting the company out of its three-month slump.

The recovery is largely attributed to AWS, Amazon's cloud unit, whose revenue growth accelerated in the latest quarter, translating into demand for its services.

Amazon's shares have climbed well off their 17-year valuation trough reached in late March but remain cheaper than historical norms, with a price-to-earnings ratio of about 25 times projected earnings over the coming year, roughly 44% below the stock's 10-year average multiple.