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▲ Amazon (AMZN), Artificial Intelligence (AI)/AI-generated image ©
Driven by better-than-expected Q2 earnings and expectations for AI and cloud growth, Amazon (AMZN) has surpassed a $3 trillion market capitalization for the first time in history, and Wall Street is seeing a flurry of buy recommendations predicting further upside.
According to cryptocurrency media Watcher.Guru on August 3 (local time), Amazon's stock price rose 4% on the first day of the new trading week, exceeding a $3 trillion market capitalization. This marks the largest single-day gain since May 5, with the stock reaching its highest level in two months. Its year-to-date cumulative growth rate has also expanded to 17%.
Amazon's Q2 adjusted earnings per share (EPS) were $1.97, surpassing market expectations of $1.82. Revenue reached $200.61 billion, exceeding Wall Street's forecast of $196.47 billion. Robust revenue from Amazon Web Services (AWS) acted as a growth driver, recovering from the stock's weakness in June.
Amazon CEO Andy Jassy stated in the earnings announcement that the capital expenditure outlook was raised to reflect the increasing memory prices related to AI infrastructure expansion. Wall Street had been paying attention to AWS growth rates and AI infrastructure investment scale even before the earnings announcement, and it was evaluated that strong revenue from the cloud business supported the stock's upward trend despite increased spending.
Jim Cramer of CNBC in the U.S. called the earnings “amazing” and named Amazon as a stock to buy now. Wells Fargo, Citi, and Wedbush also maintained their buy ratings after the earnings announcement. Tom Forte, an analyst at Maxim Group, also reaffirmed his buy rating, raised his price target, and recommended institutional investors begin buying Amazon stock.
*Disclaimer: This article is for investment reference only and does not take responsibility for investment losses based on it. The content should be interpreted for informational purposes only.*
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