Amazon stock surged 5.3% to $285.73 on Monday, hitting $3 trillion in market value for the first time. The company joins Apple, Microsoft, Nvidia, and Alphabet in the exclusive club, reaching this milestone just 18 months after crossing $2 trillion last June.
The jump landed Amazon at the top of the Dow Jones Industrial Average for the day. Wall Street's enthusiasm centers on one number: AWS revenue jumped 37% in the second quarter, the fastest growth the cloud division has posted in 18 quarters. That beat analyst expectations for around 31% growth and signals both traditional workloads and AI demand are accelerating.
Forty analysts covering Amazon have set an average price target of $333.03, implying 16.99% upside from Monday's close. The Street is nearly unanimous, with 39 Buy ratings against just one Hold and zero Sell calls. Citi raised its target to $350, Roth MKM bumped theirs to $325, and Benchmark assigned the Street high of $400.
The confidence reflects Amazon's aggressive AI bet. The company lifted its 2026 capital spending guidance to $220 billion from $200 billion, betting big on infrastructure to capture cloud demand. Morningstar analyst Dan Romanoff noted AWS growth accelerating "sharply" across both conventional and AI workloads, suggesting the company isn't chasing a single trend but capturing broad market expansion.
This article is for informational purposes only and should not be considered financial advice. Always conduct your own research before making investment decisions.
