In 2025, Amazon’s stock performance lagged behind the S&P 500 and Nasdaq 100, with only a 6.8% gain compared to double-digit returns. The company plans to invest over $125 billion in capital expenses in 2026, with more increases expected in the future. Most investors advise holding Amazon stock and using dollar-cost averaging for AI investment cycles. The company’s market cap increased to $2.50 trillion in 2025, with valuation ratios fluctuating. Amazon’s heavy spending on AI infrastructure led to $120 billion in capital expenses in the last year alone, with further increases planned for 2026 and beyond. AWS sales surged 18.2% in Q3 2025, driving Amazon’s overall sales growth. The company is banking on AI computing power for long-term success, despite the high costs involved. Investors should expect Amazon’s stock to remain volatile in 2026, with market fluctuations affecting valuation multiples. The company’s focus on AI investments will be a key factor in its stock performance next year.

Read more at Nasdaq: Is Amazon (AMZN) a Buy, Sell, or Hold in 2026?