Amazon Positioned as a Top Investment for 2026 Despite Recent Underperformance
Amazon’s stock (NASDAQ: AMZN) has gained less than 6% in 2025, significantly trailing behind the S&P 500’s nearly 18% gain and the Nasdaq Composite’s over 22%. However, the company is projected to improve its revenue by 12% year-over-year, raising earnings from $5.53 per share to an estimated $7.06, marking a growth of nearly 28% for the same year. This growth trajectory positions Amazon as an attractive buy among the “Magnificent Seven” stocks moving into 2026.
Despite challenges in its cloud computing segment, which accounts for two-thirds of operating profits, Amazon’s overall revenue growth is expected to accelerate through 2029, driven by expanding profit margins in its e-commerce and advertising sectors. Analysts are optimistic that Amazon’s ability to adapt and evolve, including new partnerships and business models, will enhance its market standing, making it a compelling option for investors seeking higher returns.
Current trends suggest that Amazon’s present stock discount offers a potential entry point for bargain hunters as market observers anticipate a turnaround in 2026. As of now, Amazon remains a crucial player in the e-commerce and cloud computing markets, with significant opportunities for future growth.
