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Amazon crosses $3 trillion valuation as AI lifts cloud demand
Amazon’s market value crossed $3 trillion for the first time on Monday as its shares rose 5.5% to a record $286.20, The Hindu reports. The stock has gained more than 23% this…
The Story in Brief
Amazon’s market value crossed $3 trillion for the first time on Monday as its shares rose 5.5% to a record $286.20, The Hindu reports. The stock has gained more than 23% this year. The rise followed Amazon’s strongest cloud growth in over four years and a higher annual capital spending forecast.
Amazon’s cloud division remains its main profit engine, with investors viewing its AI spending more favourably than that of several other large technology companies. The company has invested in Anthropic and announced plans to invest up to $50 billion in OpenAI. It took just over two years for Amazon to add $1 trillion after reaching a $2 trillion valuation in June 2024. Nvidia remains the largest company, valued at nearly $5 trillion.
The Indian Opinion
The easy story is that every rupee spent on AI will produce a winner, while the opposing claim is that all such spending is wasteful. Neither fits the evidence. Amazon’s share rally reflects cloud growth and investor confidence, but large infrastructure bills still need earnings to justify them. The useful test is whether cloud profits and cash flow keep rising after the spending surge, rather than whether the stock reaches another round number.
Source: thehindu.com
This story was synthesised by AI from the source linked above.
