A strong earnings-driven rally has pushed Amazon’s market value above $3 trillion for the first time, with growing AI demand helping boost its cloud-computing business, a key source of the company’s profits.
Amazon shares rose 5% to $285.01 on Monday, reaching a record high. The stock has gained more than 23% so far in 2026.
Last week, Amazon recorded its biggest 1-day share gain since April 2012 after reporting its strongest cloud growth in more than 4 years and increasing its annual capital spending forecast.
“Amazon is probably the most emblematic of the economy right now. It’s a consumer story and it’s an AI story,” said Mark Hackett, chief market strategist at Nationwide.
“The big scepticism coming into earnings season was if they (hyperscalers) were turning the spigot down on spending on AI. We did not get that from Amazon and Microsoft and that has unleashed a much broader all-clear for the market.”
Other major cloud and technology companies also gained on Monday. Microsoft rose 4%, Meta Platforms climbed 6%, Alphabet advanced 3.6%, and Oracle gained 5%.
Microsoft said last week that it expects to remain cash-generative through fiscal 2027 and forecast capital spending below Wall Street estimates. The update helped drive its biggest 1-day share gain since 2008.
However, Tesla and Alphabet reported negative cash flows in the latest quarter, with it being the first such quarter for Alphabet. Meta’s free cash flow also dropped 91% as the companies continued spending billions on AI infrastructure.
“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 said.
Amazon now joins Apple, Microsoft, Alphabet and Nvidia among companies that have crossed the $3 trillion market-value mark. Nvidia remains the world’s largest company, with a market value close to $5 trillion.
Founded by Jeff Bezos in 1994, Amazon took just over 2 years to add another $1 trillion after first reaching a $2 trillion valuation in June 2024.
Amazon Web Services has also benefited from expanding partnerships, including cloud infrastructure and chip supply deals with OpenAI, Anthropic and Meta.
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