Amazon’s Path to $3 Trillion Valuation
Amazon is currently valued at $2.25 trillion and could potentially exceed the $3 trillion mark within two years, driven by accelerating revenue from its cloud platform, Amazon Web Services (AWS), and improvements in its e-commerce business. AWS generated $128.7 billion in revenue in 2025, with a year-over-year growth of 24% by the fourth quarter, largely due to increased demand for AI services. Meanwhile, Amazon’s overall net income rose 31% to $77.6 billion for the same year.
AWS accounted for 18% of Amazon’s total revenue of $716.9 billion in 2025, yet contributed 57% of its operating income. The company has a significant backlog of $244 billion for new data centers, driven by increased customer demand. Amazon’s stock is currently trading at a P/E ratio of 28.6, a discount compared to the Nasdaq-100’s 31.6 P/E ratio, suggesting potential for share price growth and an increase in market capitalization.
