Amazon (NASDAQ: AMZN) has lagged the S&P 500 in 2025, with just under 7% returns. Despite comparisons to other top stocks, Amazon hasn’t performed well. The focus now shifts to 2026, where Amazon’s underperformance could set it up for a strong year ahead.
Amazon’s Q3 saw strong growth in e-commerce and third-party seller services, but its stock has struggled due to high valuation. Amazon Web Services and advertising are the main profit drivers, with AWS seeing a 20% revenue increase and advertising growing by 24% in Q3.
Investors should consider Amazon as a potential buy for 2026, as the company’s fastest-growing segments are also its most profitable. With AWS and advertising driving profits, Amazon’s stock may be worth its price tag. Consider joining Stock Advisor for more insights on top stocks to invest in. 1. The stock market experienced a significant increase today, with the Dow Jones Industrial Average rising 500 points. This surge was driven by positive economic data and strong corporate earnings reports.
2. In other news, the unemployment rate has dropped to 4%, the lowest it has been in over a decade. This decrease is attributed to a growing economy and increased job opportunities in various sectors.
3. Health officials have reported a spike in flu cases across the country, with over 10,000 confirmed cases in the past week alone. They are urging the public to get vaccinated and take necessary precautions to prevent the spread of the virus.
4. A new study has found that regular exercise can significantly reduce the risk of developing heart disease by up to 50%. Researchers recommend at least 30 minutes of moderate exercise five times a week to maintain a healthy heart.
5. The upcoming election is heating up, with candidates from both parties engaging in heated debates and campaign events. Polls show a tight race, with voters split on key issues such as healthcare, immigration, and the economy. It remains to be seen who will come out on top.
Read more at Nasdaq: Should You Buy Amazon Stock Before 2025 Is Over?