Amazon Surges Past $3 Trillion Mark as US Markets Soar on Earnings Anticipation
The US stock market surged on August 3, 2026, as investors awaited upcoming corporate earnings reports. The S&P 500 index rose by 1.5%, and Amazon.com Inc (AMZN) saw its stock surge by 4.6% to reach a historic milestone of $3 trillion in market capitalization.
Amazon's current Price-to-Sales (P/S) ratio is significantly higher than its historical median, indicating that earnings-based valuation metrics do not apply due to the company's cash-flow-negative status. The GF Score™ of 93/100 suggests strong overall performance, particularly in growth and profitability.
The recent market upswing is attributed to anticipation of corporate earnings reports from companies representing about 15% of the S&P 500's market capitalization. This week, 95 tech companies with market caps over $1 billion, including Amazon, are set to report earnings, which has contributed to positive market sentiment.
Amazon generates approximately 74% of its revenue from retail, followed by Amazon Web Services (17%) and advertising services (9%). The company's international segments contribute significantly to its total revenue, with major markets in Germany, the United Kingdom, and Japan. However, Amazon is currently overvalued based on its Price-to-Sales ratio, as traditional P/E metrics are not meaningful for a loss-making company.