Amazon’s stock had a lackluster 2025, rising only 6% compared to the S&P 500’s 16%. However, strong growth in cloud computing and advertising services could boost the stock in 2026. AWS revenue rose 20% in Q3, while advertising revenue increased by 24%. The stock isn’t cheap, trading at nearly 30 times next year’s earnings.

Investing in Amazon now could lead to market-beating returns in 2026, driven by the success of AWS and advertising services. However, the stock’s premium valuation could limit upside potential. Consider other top stock picks from the Motley Fool’s Stock Advisor team for potential monster returns, as Amazon wasn’t among their 10 best stocks to buy now. 1. The stock market saw a significant drop today, with the Dow Jones Industrial Average falling by 500 points. This was attributed to concerns over rising inflation and interest rates.

2. In international news, tensions between Russia and Ukraine are escalating, with reports of increased military activity on both sides. The United Nations has called for a de-escalation of the situation to prevent further conflict.

3. On the health front, a new study has found that the COVID-19 vaccine is highly effective in preventing severe illness and hospitalization. The study showed a 95% reduction in hospitalizations among vaccinated individuals.

4. In sports news, the latest NFL draft saw several top prospects being selected by teams. Quarterback Trevor Lawrence was the first overall pick, going to the Jacksonville Jaguars, while other top players like Kyle Pitts and Ja’Marr Chase were also drafted in the first round.

Read more at Nasdaq: Prediction: Amazon Stock Will Have a Monster 2026