Amazon Joins $3 Trillion Club on Strong AI-Driven Earnings

On August 3, Amazon’s market value surpassed $3 trillion for the first time, marking the highest single-day gain since May 5. Shares rose roughly 4-5% after the company posted a better-than-expected second-quarter earnings report that highlighted robust growth in its cloud-computing division.

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Amazon reported revenue of $200.61 billion, beating analysts’ estimate of $196.47 billion. Adjusted earnings per share came in at $1.97, above the $1.82 forecast. Amazon Web Services (AWS) generated $42.2 billion in revenue, exceeding the $40.54 billion expectation.

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The company also raised its annual capital-expenditure outlook to $220 billion, up from the $200 billion forecast made in February. CEO Andy Jassy said the increase reflects rising memory-price costs tied to the AI buildout.

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The earnings beat sparked a rally across major “hyperscalers.” Microsoft, Meta Platforms, Alphabet, and Oracle all posted double-digit percentage gains on the day.

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He also indicated that demand is already forming for 2028.

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• “But even at that amount, we will still not have enough capacity to meet all the demand we have in 2026, and I believe this dynamic will also be true in 2027 too,” — Andy Jassy, CEO

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• “Amazon is probably the most emblematic of the economy right now. It's a consumer story and it's an AI story,” — Mark Hackett, chief market strategist at Nationwide

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• “We're starting to see a differentiation between winners and losers in the Mag 7. They have been treated like one big company for a long time, but with last week's moves, they're being treated as individual companies, which is a healthy sign that balance is back,” — Hackett. Apple

Reuters