Amazon Surpasses $3 Trillion Mark, But What's Next?
Amazon's market capitalization briefly surpassed $3 trillion in early August, but what does this milestone mean for the company's future? The stock has already pulled back by 4.31% since crossing that threshold.
The fundamentals of Amazon are accelerating, with Q2 FY26 revenue reaching $200.61 billion, a 19.62% year-over-year increase. AWS growth was particularly impressive, expanding at its fastest pace in 18 quarters and hitting a $169 billion annualized run rate.
CEO Andy Jassy frames the company's $200 billion 2026 capex as a timing mismatch, with data centers built two years before revenue materializes. However, this raises concerns about free cash flow, which is currently negative at -$7.6 billion.
The 24/7 Wall St. price target for Amazon stands at $342.78 over the next 12 months, implying a 30.51% upside from its current price of $262.65. The recommendation is to buy, with a 90% confidence level.