Amazon Surpasses $3 Trillion Valuation, Eyes $4 Trillion Target

Amazon's market value surpassed $3 trillion for the first time on Monday, closing at $284.02 after a 4% increase in trading.

The e-commerce and cloud computing giant achieved this milestone due to its strong second-quarter report, which saw net sales rise 20% year-over-year to $200.6 billion and operating income climb 43% to $27.5 billion.

AWS was the standout segment, with sales growing 37% year-over-year to $42.2 billion in the second quarter and its operating income increasing about 63% to $16.6 billion.

Amazon's valuation multiple is around 31 times forward earnings estimates, which means that shares would need to rise about 31% for the company to reach a market value of $4 trillion.