Amazon's market capitalization crossed $3 trillion for the first time on Monday as mega-cap technology stocks rallied across the Nasdaq. Meta Platforms led the gains, up 7%, while Microsoft, Amazon, Alphabet and Oracle also advanced on last week's hyperscaler earnings and an easing geopolitical backdrop.
Amazon's market capitalization crossed $3 trillion for the first time on Monday as shares climbed 5% to $283.89. Meta Platforms shares led the group, up 7% to $593.15. Microsoft shares gained 5% to $488.16.
Alphabet shares rose 5% to $374.40. Oracle shares advanced 8% to $139.80. The catalyst is a mix of last week's blowout hyperscaler earnings and a risk-on mood after President Trump called off strikes on Iran.
Azure and AWS Anchor the AI Earnings Case
Microsoft's Q4 FY2026 report set the tone: Azure revenue grew 43% year over year and topped $100 billion in annual sales for the first time. According to 24/7 Wall St, CEO Satya Nadella said: "Azure revenue surpassed $100 billion for the first time".
Amazon's cloud unit moved similarly. AWS revenue rose 37% to $42.2 billion, its fastest pace in 18 quarters. CEO Andy Jassy said the company's AI and chip businesses each now run at about a $25 billion annual revenue run rate.
Meta recovered the 9% drop that followed its mixed second-quarter print. Advertising revenue climbed 27% to $59.4 billion.
Google Cloud revenue accelerated to 82% growth at $24.8 billion. Alphabet raised its full-year capex guidance to $195 billion-$205 billion from $180 billion-$190 billion.
Oracle's cloud infrastructure revenue jumped 93% to $5.8 billion. Yet the stock remains down 28% year to date on AI-spending concerns tied to its reliance on OpenAI.
Nasdaq Breadth Lags the Mega-Cap Surge
The Invesco QQQ Trust, which holds every hyperscaler in Monday's rally, rose 1.67% to $699.45. The comparatively modest move reflects the diversification of the Nasdaq 100 against Monday's concentrated mega-cap tape.
Retail sentiment moved with the tape. Microsoft's Reddit sentiment reading hit 94, very bullish, on July 31. Amazon's reading peaked at 82 on August 2.
Prediction markets echoed the shift. Polymarket assigned a 99.4% probability that Microsoft closes higher Monday. Polymarket assigned Amazon a 93.1% probability of closing higher.
The bull case rests on cloud growth compounding at these rates and the backlog converting to revenue. The bear case rests on free cash flow compression as capex intensity builds.
Source: 24/7 Wall St
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