Amazon Surpasses $3 Trillion Market Cap After Strong Q2 Earnings

Amazon's market capitalization has surpassed $3 trillion for the first time after its second-quarter 2026 earnings release. The company's stock price surged to $284.02, closing at this level on August 3.

The significant increase in Amazon's stock price was driven by better-than-expected financial results, particularly in its AWS cloud business. Total revenue for the quarter grew 20% year-over-year to $200.6 billion, while operating profit increased 43% to $27.5 billion.

AWS revenue jumped 37% to $42.2 billion, with a 63% increase in operating profit to $16.6 billion. This growth was primarily driven by the migration of traditional enterprise workloads to the cloud and new computing demand generated by generative AI.

JPMorgan raised its price target for Amazon from $330 to $365, citing accelerating AWS growth, increasing cloud contracts, and expanding AI demand. However, the company is also spending heavily on capital expenditures to meet AI demand, which may squeeze free cash flow.