Amazon's market cap exceeded $3 trillion for the first time as shares hit a new all-time high Monday, up 4% after strong Q2 earnings. The surge was driven by robust cloud growth and AI demand, leading CEO Andy Jassy to hike capex estimates for 2024.
Amazon's market capitalization exceeded $3 trillion for the first time, fueled by strong quarterly results and investor confidence in its AI-driven cloud business. This makes it the fifth company to reach this milestone, with its AI investments being rewarded by investors unlike some other tech giants.
Sequoia partner David Cahn projects AI infrastructure spending to hit $1.5 trillion by 2026, requiring $3 trillion in revenue to justify the investment. Despite strong ARR from companies like Anthropic and OpenAI, a significant revenue gap remains, posing a risk to the economy if hyperscalers fail to meet cash flow goals.
Michael Burry, known for "The Big Short," revealed he has no position in SpaceX, citing expensive bearish options. He questioned the company's nearly $3 trillion valuation, calling it a "small space company" with less than $20 billion in revenue, and noted it now surpasses Berkshire Hathaway's market value.
Global military spending rose to almost $3 trillion, with Europe accounting for the largest regional increase, according to SIPRI Read Full Article at RT.com
