Amazon shares closed at a record high on Monday, with the company’s market capitalization surpassing $3 trillion for the first time. The stock gained 4% during the session, marking its best performance since May 5.
The rally followed the company’s second-quarter earnings report released the previous week, which demonstrated robust expansion in its cloud computing division fueled by artificial intelligence demand. Amazon reported adjusted earnings per share of $1.97, exceeding analyst expectations of $1.82 per share. Revenue totaled $200.61 billion, outperforming the estimated $196.47 billion.
Amazon Web Services, the company’s cloud unit, generated $42.2 billion in revenue during the quarter, surpassing StreetAccount expectations of $40.54 billion. Chief Executive Andy Jassy indicated during the earnings conference call that the company plans to increase capital expenditures significantly this year, projecting spending to reach $220 billion, compared to the $200 billion anticipated in February. Jassy noted that despite the heightened investment, Amazon would still lack sufficient capacity to fulfill all current demand in 2026 and anticipated this constraint would persist into 2027, with 2028 demand already proving substantial.
The upswing reflects competitive dynamics in cloud computing, as Amazon’s major rivals also reported significant growth. Microsoft’s Azure cloud revenue increased 43% during its fiscal fourth quarter, while Google Cloud reported 82% growth during its recent earnings announcement.
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