Amazon Surges Past $3 Trillion Market Value on Strong AWS Performance

Amazon's stock price surged to $3 trillion in market value after a sharp rally on Monday, making it the fifth business to reach this milestone. The tech giant's cloud unit, AWS, played a significant role in its rapid growth, with revenue increasing at its fastest pace in three years.

The company's recovery is attributed to its second-quarter earnings report, which eased concerns about heavy AI spending. Investors had initially punished companies with large AI commitments, but Amazon's strong performance in the cloud unit helped lift it out of a three-month slump.

Amazon's valuation has improved significantly since hitting a 17-year low in late March. Despite its recent gains, the stock remains relatively cheap, trading at around 25 times projected earnings over the next year, roughly 44% below its 10-year average multiple.