.png){kind=logo}
Amazon’s market value crossed $3 trillion for the first time on August 3 after investors welcomed its second-quarter results. The stock gained about 5% to reach a record near $285, pushing its 2026 increase above 23%.
The rally followed Amazon’s fastest cloud growth in more than four years. Demand for artificial intelligence computing supported Amazon Web Services, while the wider company also beat revenue forecasts. Amazon shares had already surged 15% on Friday after the company released the quarterly figures.
Amazon became the fifth company to reach a $3 trillion market capitalization. Apple, Microsoft, Alphabet and NVIDIA had crossed the level earlier. NVIDIA still held the highest market value, near $5 trillion.
Amazon first reached a $2 trillion valuation in June 2024. It added another trillion dollars in just over two years as cloud sales, advertising revenue and retail activity expanded. Monday’s move also followed a sharp rise after Thursday’s earnings release.
Other large technology shares gained during Monday’s session. Microsoft rose about 4%, Meta Platforms added approximately 6%, Alphabet gained 3.6% and Oracle advanced around 5%. The moves came as investors reviewed cloud demand and planned spending across major technology companies.
Amazon Web Services generated $42.2 billion in second-quarter revenue, up 37% from one year earlier. The result exceeded the market estimate and marked AWS’s strongest growth rate in 18 quarters. Analysts had expected about $40.5 billion, leaving the cloud unit nearly $1.7 billion above the consensus forecast.
Total Amazon revenue reached about $200.6 billion, rising 20% from the previous year. The figure also came above Wall Street forecasts near $197 billion. AWS contract backlog increased to $496 billion from $364 billion in the previous quarter.
Artificial intelligence workloads drove more demand for computing power, storage and chips. Amazon said its AI and chip businesses each passed annual revenue run rates of $25 billion. AWS has also expanded agreements with OpenAI, Anthropic, Meta and other corporate customers.
Meanwhile, Amazon reported strong growth outside cloud services. Advertising revenue increased 26% to $19.8 billion. The retail business also benefited from Prime Day sales and faster delivery services across more locations.
Amazon raised its 2026 capital expenditure forecast to $220 billion from $200 billion. Chief Executive Andy Jassy linked the increase partly to higher memory prices and continued investment in data centers, chips and AI systems.
Jassy said, “we will still not have enough capacity to meet all the demand we have in 2026.” He also said demand already booked for 2028 was ‘striking,’ pointing to long-term customer commitments.
However, the higher spending affected cash flow. Amazon reported negative free cash flow of $7.6 billion, compared with positive free cash flow of $18.2 billion one year earlier. The company spent $54.2 billion on property and equipment during the quarter.
Amazon’s results arrived during a broad review of technology spending. Microsoft also reported strong Azure growth, while Google Cloud posted faster sales growth. Investors focused on whether rising cloud revenue could keep pace with spending on servers, chips and data centers.
Amazon’s $3 trillion valuation placed the company among a small group of technology firms that have reached the level. Its latest market value followed stronger AWS growth, higher company revenue and a larger infrastructure budget for 2026.
Also Read: Tesla Stock Faces Q2 Earnings Test as Margins and Cash Flow Take Focus
