Amazon Surges Past $3 Trillion Market Cap on Strong Earnings

Amazon's market capitalization has surpassed $3 trillion for the first time after shares reached a new all-time high on Monday. The jump comes following last week's earnings report, which beat analyst estimates.

Adjusted earnings per share came in at $1.97, while revenue hit $200.61 billion, exceeding expectations of $196.47 billion. This surge in growth is partly due to the increased demand for cloud services, particularly artificial intelligence.

Amazon Web Services (AWS) revenue reached $42.2 billion, beating StreetAccount estimates of $40.54 billion. AWS has seen significant growth alongside Microsoft Azure and Google Cloud, which reported 43% and 82% increases in their own earnings respectively.

The company's capex estimate has been increased to $220 billion this year, up from the initial projection of $200 billion. However, CEO Andy Jassy stated that despite this increase, Amazon will still face capacity constraints in 2026 and 2027, with demand for 2028 already being 'striking'.