AMZN stock jumped more than 5% on Monday as Amazon reached a $3 trillion market value for the first time, supported by stronger cloud results and fresh Wall Street price target upgrades. Amazon Hits $3 Trillion Market Value Amazon shares rose 5.3% to $285.73 on Monday, putting the stock on track for a record closing high. The gain also made Amazon the top performer in the Dow Jones Industrial Average during the session. The rally pushed Amazon’s market value above $3 trillion for the first time. Amazon became the fifth company to reach that level after Apple, Microsoft, Nvidia, and Alphabet. Amazon first closed above a $1 trillion market cap on February 4, 2020. The company later reached a $2 trillion market value on June 26, 2024. The latest move followed Amazon’s stronger second-quarter earnings report. Investors focused on cloud demand after Amazon Web Services revenue rose 37% from a year earlier. Wall Street Keeps Strong Buy View Wall Street remains positive on Amazon’s next 12 months. Based on 40 analysts tracked over the past three months, AMZN stock carries an average price target of $333.03. That target represents a 16.99% gain from the latest listed price of $284.67. The highest forecast stands at $400, while the lowest forecast is $250. Source: TipRanks Amazon also holds a Strong Buy rating, with 39 Buy ratings, one Hold rating, and no Sell calls. The setup shows broad analyst confidence after the company’s cloud and AI results. Citi analyst Ronald Josey reiterated a Buy rating and raised his price target to $350 from $325. Roth MKM analyst Rohit Kulkarni also kept a Buy rating and lifted his target to $325 from $300. Benchmark’s Daniel Kurnos assigned the Street-high $400 target on July 31. The new analyst moves followed Amazon’s latest earnings and improving AWS performance. AWS Growth Drives Analyst Confidence AWS revenue grew 37% in the second quarter, beating expectations for about 31% growth. The result marked the cloud unit’s fastest growth in 18 quarters. Morningstar analyst Dan Romanoff said, “AWS was strong, with growth accelerating sharply to 37% year over year, the fastest growth printed in 18 quarters.” He added that demand covered both traditional and AI workloads. The cloud results helped support Amazon’s large AI investment plan . The company raised its 2026 capital spending guidance to $220 billion from $200 billion. Amazon’s trailing 12-month free cash flow turned negative by $7.6 billion. However, investors appeared more focused on AWS growth and signs that AI infrastructure spending is bringing demand. UBS expects AWS growth to reach 48% in 2027 as OpenAI begins using Trainium. The firm also said investors may be underestimating Amazon’s backlog and future revenue growth. Amazon’s revenue could more than double from about $831 billion in 2026 to roughly $1.7 trillion by 2030, based on that view. Earnings per share could rise from $11 to $45 if AWS, advertising, retail margins, and same-day delivery continue improving.
