AWS Powers Amazon to $3 Trillion Valuation Milestone

Amazon's market value has surpassed $3 trillion for the first time after its shares jumped nearly 5% on Monday. The boost followed a stronger-than-expected earnings report that reassured investors about Amazon's cloud computing business, particularly Amazon Web Services (AWS).

AWS revenue rose 37% to $42.2 billion during the quarter, beating Wall Street expectations of roughly 31%. CEO Andy Jassy highlighted AWS' booming growth, stating 'AWS is now a $169 billion annualized revenue run rate business.' This places it 24th on the Fortune 500 list if it were a standalone company.

The results alleviated concerns about Amazon's aggressive AI spending weighing on profitability. Analysts and investors are increasingly convinced that these investments are producing tangible returns, with AWS continuing to strengthen its position as the company's primary profit engine while demand for AI-powered cloud services accelerates.