In 2025, Amazon shares only returned 5.2%, underperforming the S&P 500’s 17.9%. However, optimism for 2026 arises from the growth potential of Amazon’s cloud computing business, AWS, which saw a 20% growth in the third quarter. This segment is poised to meet the rising demand for agentic AI, positioning Amazon for future success.

Investors eyeing Amazon stock should consider the potential of AWS, which plans to double its capacity by 2027 to drive revenue growth. With Amazon Bedrock expected to be a significant revenue driver, the stock’s current low multiple of operating cash flow presents a buying opportunity. Analysts predict Amazon’s outperformance against the S&P 500 in 2026, making it a stock to watch.

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Read more at Nasdaq: 1 Reason Amazon Stock Could Outperform in 2026