Amazon has joined the "club" of companies with a market capitalization of more than $3 trillion. There are only five of them.

Amazon, a giant in the e-commerce and cloud computing sectors, has surpassed the $3 trillion market capitalization mark for the first time, becoming the fifth company in history to reach this milestone, according to Bloomberg. This “club” also includes Nvidia, Alphabet, Microsoft, and Apple.

It took Amazon just over two years to increase its market capitalization from $2 trillion to $3 trillion. The agency notes that it took more than six years to go from the first trillion to the second.

Amazon shares rose 4.9% during trading on August 3, continuing last week’s sharp rally following the release of its second-quarter earnings report, which showed an acceleration in cloud computing revenue.

For most of the past three months, investors have been selling off shares of Amazon and other tech giants amid disappointment with companies investing billions of dollars in artificial intelligence, the agency notes. As a result, Amazon’s stock price has fallen nearly 18% from its May peak. Last week, those fears subsided: Amazon Web Services, the company’s cloud division, reported its strongest revenue growth since 2021. Shares soared more than 15% in a single day, marking the sharpest jump in the past 14 years and adding nearly $400 billion to the company’s market capitalization.

This helped Amazon regain its position as the top-performing stock among the "Magnificent Seven" this year. And although the rally has lifted the stock’s valuation from the 17-year low recorded in late March, it remains well below historical levels. With a price-to-earnings ratio of about 25 times projected earnings for the next 12 months, the stock is trading at a discount of about 44% to its average over the past decade.

Wall Street is extremely optimistic about Amazon: 67 out of 69 analysts covering the stock recommend buying it. The remaining two recommend holding it in their portfolios. The average price target implies a rise in the company’s share price of nearly 20% relative to the closing price on July 31.

This article was AI-translated and verified by a human editor