Amazon tops $3 trillion market cap as stock continues post-earnings surge
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- Amazon shares rose roughly 4% Monday to push market cap past $3 trillion for the first time — the stock's best day since May 5 — following a Q2 earnings beat with adjusted EPS of $1.97 (vs. $1.82 estimates) and revenue of $200.61 billion (vs. $196.47 billion expected).
- Amazon Web Services revenue hit $42.2 billion, beating StreetAccount expectations of $40.54 billion on the back of surging AI demand.
- Amazon raised its 2025 capex estimate to $220 billion, up from a $200 billion projection issued in February, citing rising memory prices tied to the AI buildout.
- CEO Andy Jassy told investors that even $220 billion in capex won't provide enough capacity for 2026 demand and that 2028 demand is already "striking."
- Cloud rivals posted parallel gains in their latest reports: Microsoft Azure revenue rose 43% in fiscal Q4 and Google Cloud grew 82%.
Why it matters: Amazon's $3 trillion milestone shows investors are rewarding massive AI infrastructure spending rather than punishing it, even as Jassy says $220 billion in 2025 capex won't meet 2026 demand. The competitive backdrop is intensifying — Microsoft Azure grew 43% and Google Cloud 82% in the same earnings cycle, putting AWS's $42.2 billion quarter under sharper pressure.
