Amazon’s stock performance in 2025 was lackluster, rising only 5% compared to the S&P 500’s 16%. However, with strong business results, 2026 could be a year for Amazon to bounce back and outperform the market. The success of its advertising service and AWS will be crucial for its stock to soar.
Amazon is excelling in its various businesses, including online stores, third-party seller services, advertising services, and subscription services. Advertising revenue reached $17.7 billion, with a significant operating margin. AWS, Amazon’s cloud computing segment, posted a 35% operating margin and accounted for 66% of operating profits.
Despite its success, Amazon is a mature business with a valuation similar to its peers. At 29 times forward earnings, the stock is not cheap but not overly expensive. Investors should consider if Amazon can outperform its peers in 2026 before buying its stock. The Motley Fool’s analyst team also identified 10 other top stocks for investors to consider.
Stock Advisor’s total average return is 971%, significantly outperforming the S&P 500. Investors should review the latest top 10 list available with Stock Advisor to potentially achieve strong returns. The success of Amazon in 2026 will depend on its ability to maintain growth in advertising services and AWS. 1. The unemployment rate in the United States dropped to 3.9% in July, the lowest it has been in 18 years. This is a positive sign for the economy and job market.
2. A new study found that eating a diet rich in fruits, vegetables, and whole grains can reduce the risk of developing type 2 diabetes by up to 30%. This highlights the importance of healthy eating habits in preventing chronic diseases.
3. The World Health Organization (WHO) declared the Ebola outbreak in the Democratic Republic of Congo a “public health emergency of international concern.” This decision was made due to the increasing number of cases and the potential for the virus to spread to neighboring countries.
4. The US Women’s National Soccer Team won the FIFA World Cup for the fourth time, defeating the Netherlands 2-0 in the final. This victory not only showcases the team’s talent and skill but also highlights the ongoing fight for gender equality in sports.
5. Tesla announced a record-breaking quarter with a revenue of $6.3 billion, surpassing expectations and sending its stock price soaring. This success is attributed to strong sales of its Model 3 car and increased production efficiency.
6. The European Union imposed a record $5 billion fine on tech giant Google for antitrust violations related to its Android operating system. This decision aims to promote fair competition and protect consumers in the digital market.
Read more at Nasdaq: Is Amazon Stock a Buy for 2026?