Amazon's turnaround: The fifth company on Wall Street to reach a valuation of $3 trillion

Amazon has crossed a market capitalization of $3 trillion for the first time, becoming only the fifth company in history to reach this milestone. Shares of the company, which operates in the fields of e-commerce and cloud computing, are rising today by around 5%, continuing the turbulent 15.3% surge from last week following second-quarter reports that showed an acceleration in cloud computing revenue.

The internet giant finished the second quarter of 2026 with revenue of $200.6 billion, while AWS revenue jumped by 37%. Amazon is the fifth-largest company on Wall Street after Nvidia, Apple, Alphabet, and Microsoft, ahead of Meta and Tesla.

Amazon had been mired in massive sell-offs for most of the last three months, as investors paid less attention to the stocks of companies that committed to investing billions of dollars in artificial intelligence. Its stock plunged by nearly 18% from its peak on May 6 to a three-month low reached last month. Concerns eased last week after the company reported that revenue for the Amazon Web Services unit in the past quarter jumped at the highest rate since 2021. The stock surged by more than 15% in response, the company's largest single-day gain in 14 years, and the company added about $400 billion to its value.

The surge in the stock helped Amazon return and position itself as the best-performing stock among the "Magnificent Seven" stocks this year. Since the beginning of the year, the stock has jumped by 23%. Although the surge raised Amazon's market value, it is still significantly lower than the levels at which it traded historically. At a multiple of about 25 times earnings forecasts for the next 12 months, the stock is trading about 44% cheaper compared to its average over the last decade.

It took Amazon a little over two years to reach a market cap of $3 trillion after it first crossed the $2 trillion mark in June 2024. However, this pace is faster than the 6-plus years that passed between that milestone and the time it first crossed the trillion-dollar mark at the end of 2018. Wall Street remains overwhelmingly optimistic about Amazon's long-term growth prospects — analysts covering the stock now project a 14% increase from its current price, according to data collected by Bloomberg.