Amazon Tops $3 Trillion in Market Value

Overview

• Shares jumped about 5% on Monday after the company’s second-quarter results, pushing Amazon’s market capitalization above $3 trillion for the first time.
• Amazon reported Q2 profit above $62 billion and AWS revenue of $42.2 billion, a 37% year-over-year increase that is the division’s strongest growth in years.
• Chief executive Andy Jassy said demand for AI services outstrips the company’s current compute capacity, signaling a need for faster investment in servers and data centers.
• Several brokerages raised price targets after the report and Bloomberg’s compiled average target implies roughly 14% upside, while Amazon trades at about a 25x forward multiple below its decade average.
• The milestone places Amazon alongside Nvidia, Alphabet, Microsoft and Apple and could drive more spending on chips, infrastructure and hiring that will affect customers, suppliers and data-center markets.