Amazon shares hit a new all-time high as the company's market capitalization surpassed the $3 trillion threshold.
Amazon shares reached a record high on Monday, with the company's market capitalization exceeding $3 trillion for the first time. This growth was driven by a stronger-than-expected second-quarter earnings report, which highlighted a surge in cloud computing revenue fueled by significant artificial intelligence demand. Andy Jassy reported that Amazon Web Services revenue reached $42.2 billion, surpassing analyst expectations. The company's total revenue of $200.61 billion also beat Wall Street forecasts. Andy Jassy noted that capital expenditures are now projected to reach $220 billion this year, an increase from the $200 billion projected in February. This adjustment is due to rising memory prices linked to the AI buildout. The company's stock rose roughly 4% to 5% on Monday, marking its best single session since May 5. Amazon joins an exclusive group of companies that have ever reached a $3 trillion valuation, including Apple, Microsoft, Alphabet, and Nvidia.