Amazon's market value reached $3 trillion on Monday, August 3, 2026, marking its entry into an exclusive club of companies that includes Apple, Microsoft, Alphabet, and Nvidia. This milestone follows a significant rally after its Q2 earnings report, which showcased the company's strongest cloud growth in over four years and an increased annual capital spending forecast. Amazon Web Services (AWS) revenue hit $42.2 billion, exceeding StreetAccount expectations of $40.54 billion. The company reported adjusted earnings per share of $1.97 on revenue of $200.61 billion, beating analyst estimates of $1.82 per share and $196.47 billion respectively. CEO Andy Jassy highlighted that the surge in cloud growth is largely fueled by robust artificial intelligence demand, anticipating this trend to continue through 2027 and noting striking demand for 2028.
The company's shares were up approximately 4% to 5% on Monday, hitting a record high of $285.01 and bringing its year-to-date gains to over 23%. This rapid ascent saw Amazon add another trillion dollars to its market value in just over two years since first reaching $2 trillion in June 2024. Capital expenditures are now projected to reach $220 billion this year, an increase from the $200 billion forecast in February, partly due to rising memory prices associated with AI buildout. Mark Hackett, chief market strategist at Nationwide, described Amazon as emblematic of the current economy, embodying both consumer and AI narratives.
Other major technology companies, referred to as hyperscalers, also experienced gains on Monday. Microsoft rose 4%, Meta Platforms 6%, Alphabet 3.6%, and Oracle 5%. This broader market optimism stems from strong earnings from Amazon and Microsoft, which eased concerns about hyperscalers slowing down AI-related spending. AWS has expanded its partnerships, including cloud infrastructure and chip supply deals with companies like OpenAI, Anthropic, and Meta. Nvidia currently holds the largest market capitalization, approaching $5 trillion.
