Amazon’s Performance and Projections for 2026
Amazon (NASDAQ: AMZN) finished the year 2025 with only a 5% increase in stock value, making it the weakest performer among the “Magnificent Seven” tech stocks as the S&P 500 rose over 16%. Despite a challenging year, analysts predict Amazon’s e-commerce margins will continue to expand through increased automation and robotics in its operations, with expected cost savings of up to $4 billion.
As of January 14, 2026, Amazon’s price-to-earnings ratio is approximately 34.2, significantly lower than its five-year average. The company’s advertising sector is also thriving, growing at a rate of 24% year-over-year, compared to its cloud service AWS, which grew by 20% and accounted for 18% of total revenue in the third quarter of 2025, generating $33 billion in total revenue.
