For the first time in its history, Amazon com Inc has surpassed the $3.0 trillion market capitalization milestone, becoming only the fifth company in the world to reach this valuation level. Shares of the e-commerce and cloud computing technology giant showed growth of about 5% at the beginning of the trading session, continuing the powerful rally that began after the publication of the financial report for the second quarter. This result allowed Amazon to join an exclusive club of corporations, including Nvidia, Alphabet, Microsoft and Apple. It is noteworthy that the company has spent just over two years moving from the $2.0 trillion mark reached in June 2024, which indicates a significant acceleration in the pace of shareholder value creation compared to previous growth cycles.

The main catalyst for the current investor optimism has been the acceleration of revenue growth in the Amazon Web Services (AWS) division, which has demonstrated maximum expansion momentum since 2021. This news completely negated the market's concerns that had formed over the previous three months, when capital was actively withdrawing from the technology sector due to skepticism about large-scale investments in artificial intelligence. As a result, the company's shares soared by more than 15% in one trading day, adding almost $400.0 billion to the total capitalization, which was the strongest one-day jump in the last 14 years. Thanks to this breakthrough, Amazon has once again topped the ranking of the most profitable assets in the Magnificent Seven group, while the index of its direct technology competitors shows a modest growth of 2.1% this year.

Despite reaching a historic high, Amazon's current valuation remains attractive in terms of fundamentals. With a forward earnings multiplier of approximately 25 times over the next 12 months, the stock is trading at a discount of about 44% relative to the historical average over the past decade. Wall Street analysts remain extremely optimistic about the corporation's long-term prospects. According to the average forecasts of Bloomberg experts, the growth potential of Amazon quotes is estimated at about 14% over the next year from current levels.

***

The material has been prepared solely for informational purposes and does not constitute financial advice or recommendation.