Amazon is heavily investing in AI infrastructure to meet strong AWS demand. Digital advertising is expected to drive growth next year. The stock’s low EV-to-EBIT ratio suggests potential upside. Despite facing challenges, Amazon remains optimistic as investors look ahead to 2026.

Amazon is a leading hyperscaler investing billions in AI. AWS success is crucial for the business, with revenue of $33 billion in Q3. AWS benefits from customer interest in AI tools, potentially boosting Amazon’s financial results in 2026.

Amazon’s digital advertising revenue rose 22% to $17.7 billion last quarter. The company competes with industry giants like Alphabet and Meta Platforms. Expect continued growth in digital ad revenue next year, barring a severe recession.

Amazon’s low valuation presents a potential opportunity for investors. With an EV-to-EBIT ratio near a decade low, valuation expansion could drive returns in 2026. Market sentiment and strong financial results may act as catalysts.

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Read more at Nasdaq: Amazon Stock in 2026: Key Catalysts and What Investors Should Watch