Amazon Stock Performance in 2026
Amazon (NASDAQ: AMZN) has seen a disappointing start to 2026, with stock prices increasing only 7% year-to-date, lagging behind the S&P 500. After hitting all-time highs a few weeks ago, Amazon’s stock has since declined by approximately 10%.
Business Units Overview
The company’s e-commerce sector remains its most recognized, but it is the Amazon Web Services (AWS) division that significantly contributes to profits—59% in Q1 2026. While AWS’s revenue growth surged by 28% in Q1, the e-commerce sector grew by 19% internationally and 12% in North America. AWS is investing heavily in AI technology, with spending expected to reach $200 billion this year, positioning it for substantial long-term growth.
Comparison to Peers
Currently, Amazon’s operating cash flow valuation is relatively attractive compared to major tech competitors. For instance, Apple trades at 32 times operating cash flow, while Alphabet trades at 26 times, and Microsoft’s valuation is about 17 times, similar to Amazon’s. Analysts suggest that Amazon may represent a buying opportunity as the AI build-out progresses.
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