Amazon.com (AMZN) has stormed into the upper echelon of global market capitalization following a blockbuster earnings report. The stock surged again on Monday, climbing more than 5% intraday, pushing its market value above the $3 trillion mark for the first time. It now stands as the fifth company in history to reach this threshold, joining the ranks of Nvidia, Alphabet, Microsoft, and Apple.

This rally extends the powerful rebound that began after last week's earnings release, where the acceleration in Amazon Web Services (AWS) revenue reignited broad market optimism. The stock posted a single-day gain of over 15% on Friday, its largest daily jump in more than 14 years, adding nearly $400 billion to its market cap. With this week's continued climb, Amazon now leads the "Magnificent Seven" in year-to-date performance, with gains of roughly 10%, compared to a collective increase of just 2.1% for other major tech stocks.

AWS Acceleration Addresses Key Market Concerns

In recent months, Amazon.com shares faced significant pressure. Investor skepticism grew over whether heavy capital spending on artificial intelligence by major tech firms would yield tangible returns. From its all-time high on May 6, the stock fell nearly 18% to a recent low. However, the second-quarter earnings report dispelled this pessimism. It revealed that AWS's quarterly revenue growth hit its fastest pace since 2021, directly addressing the market's core doubts about the cloud business's ability to absorb massive AI investments. This triggered a substantial price surge, with the single-day market cap increase being one of the largest in history.

Valuation Remains Attractive, Analysts See Further Upside

The trajectory of Amazon.com's market cap expansion has accelerated dramatically. The company first hit the $1 trillion mark in late 2018, took over six years to reach $2 trillion in June 2024, and then needed just over two years to double that figure. This speeding up of milestones reflects a powerful re-rating driven by cloud computing and AI trends. Despite the sharp rebound, the stock's valuation remains historically low. At roughly 25 times forward earnings, it is about 44% below its ten-year average. While it has recovered significantly from a 17-year valuation low hit in late March, it is still well off its historical average. According to data compiled by Bloomberg, Wall Street analysts maintain a highly optimistic outlook on Amazon.com, with a median price target implying roughly 14% upside from current levels, suggesting the rally has not yet stretched valuations.