Amazon Hits $3 Trillion Valuation, Joining Elite Club

The milestone came after shares jumped more than 4% in morning trading, following the company's second-quarter earnings report last week that beat analyst expectations. The stock's rally pushed Amazon's market capitalization above $3 trillion for the first time.

Amazon's cloud computing unit, Amazon Web Services, continued to be a major growth driver, with revenue rising 19% year over year. The company also reported strong advertising sales and improved efficiency in its retail operations.

The valuation milestone places Amazon among the five most valuable publicly traded U.S. companies. Nvidia, Microsoft, Apple, and Alphabet had already crossed the $3 trillion mark, with Nvidia being the first to do so in 2024.

Analysts attribute Amazon's recent gains to its aggressive expansion in artificial intelligence, both through AWS's AI services and investments in AI startups. The company has also benefited from a broader market rally in technology stocks.

Amazon's achievement underscores the growing dominance of mega-cap tech companies in the stock market. The five companies now represent a significant portion of the S&P 500's total value, raising concerns among some investors about market concentration.