Amazon Seen Hitting $3 Trillion Before Microsoft as Market Cap Gap Narrows to $200 Billion
Updated
Updated · The Motley Fool · Jun 22
Amazon Seen Hitting $3 Trillion Before Microsoft as Market Cap Gap Narrows to $200 Billion
3 articles · Updated · The Motley Fool · Jun 22
Summary
$2.6 trillion Amazon is projected to overtake Microsoft’s $2.8 trillion valuation and reach $3 trillion later this summer, despite only a 6% stock gain this year.
A 22% year-to-date drop in Microsoft shares has closed the gap, while Amazon’s latest quarter showed 17% net sales growth—its fastest top-line expansion in four years.
AWS underpins that case by generating more than half of Amazon’s operating profit, and the company’s retail business is seen as less exposed to AI disruption than Microsoft’s Windows and Office franchises.
Microsoft still posts strong growth and trades at under 20 times next fiscal-year earnings versus Amazon near 25, but investor concern has shifted toward rising AI competition from OpenAI rivals, Anthropic and Gemini.