For the past two years, the stock market narrative has been dominated by a single theme: infrastructure. Investors watched as major technology companies poured hundreds of billions of dollars into data centers and graphics processing units (GPUs).
While Amazon stock (NASDAQ: AMZN) gained 5% in 2025, the stock notably underperformed the broader S&P 500, which climbed 16% over the same period. However, momentum has shifted in 2026; the stock has seen a strong start to the year, rising 7% year-to-date.
As the artificial-intelligence trade heats up, the search for tangible returns on investment continues. That could lead to a shakeup of the “Magnificent Seven” leaderboard, with Amazon.com and Meta Platforms stealing the spotlight.
Amazon has proposed building a big-box retail store in a Chicago suburb that would be larger than a Walmart Supercenter. It marks Amazon's latest physical retail experiment, after it launched bookstores, a chain of fashion stores, convenience marts and supermarkets, scrapping some concepts along the way.
Amazon.com, Inc. is extremely attractively valued, with a projected FY2028 forward P/E of 19 and robust EPS growth drivers. AMZN's leadership in cloud and e-commerce, combined with strict cost control, supports a bullish long-term investment thesis. Wall Street consensus targets a 20% upside, with strong momentum in positive EPS revisions and potential for further upward price target revisions.
Amazon.com, Inc. has not performed well in 2025 compared to the broader market and Big Tech peers. This is not due to fundamental weakness. In fact, EPS growth prospects for AMZN are amazing thanks to innovation, high margin segments and investments. Trading at a 30 forward P/E and other historically low multiples shows the market is not pricing in enough of AMZN's true earnings power.
Amazon: The World's No. 1 Hyperscaler Is Definitely Not 'AI Hype'
Amazon.com, Inc. needs a catalyst to break out of its yearlong consolidation. AMZN's rebranding of Leo just ahead of this rally in space stocks could serve as the catalyst the stock needs. Strong macro tailwinds, technical improvement, and fundamentals pointing to undervaluation all support a bullish outlook for a sustained rally.
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Amazon's AWS posts its fastest growth since 2022 as AI demand surges, with a $200 billion backlog and heavy investment fueling 2026 optimism.
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Amazon.com, Inc. is rated a Strong Buy for 2026+, driven by low valuations and robust growth in AWS and emerging tech initiatives. AMZN trades at a 10-year low P/E multiple, despite accelerating AWS growth and minimal reliance on its retail segment for future upside. Key growth drivers include AWS, Project Kuiper (LEO satellites), agentic AI, custom silicon, and the Prime ecosystem, positioning AMZN against competitors like Starlink.