Amazon’s stock had a disappointing year in 2025. While the stock didn’t lose value, closing 5% higher meant that it lagged every other Magnificent Seven stock. Amazon couldn’t even keep up with the S&P 500 this year, and its five-year gains also trail the index.

However, Amazon stock may be due for a resurgence in 2026, similarly to how many investors counted out Google at the start of 2025 before an incredible rally. These are some of the catalysts that can help Amazon hit all-time highs and outperform the stock market.

Cloud computing is a big part of Amazon’s long-term success, with Amazon Web Services representing almost 20% of the company’s revenue. Amazon’s cloud platform also has high profit margins, which give the company more capital to invest in additional ventures.

Amazon Web Services revenue increased by 20% year-over-year in Q3, and that was a meaningful acceleration. Sales growth for this segment had been hovering in the mid-teens for several quarters. A return to 20%-plus growth rates and acceleration can push overall revenue growth higher. That scenario seems likely, since Amazon Web Services forms the backbone of many websites and AI apps.

The cloud segment continues to receive significant updates, including AI agents that help people become more productive. Developers can create AI agents with Amazon’s cloud ecosystem, and that extra feature can attract more businesses and consumers to Amazon Web Services.

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Amazon has regularly posted double-digit revenue growth rates, and it followed the tradition with 13% year-over-year sales growth in Q3. These growth rates are higher than Amazon’s stock gains, and net income exhibited higher growth rates.

If revenue and net income growth outpace stock gains, the stock price has to eventually catch up. 2026 may be the year that Amazon stops underperforming the S&P 500 and turns double-digit revenue growth rates into meaningful stock gains.

Amazon also has multiple levers to boost revenue. The online marketplace and Amazon Web Services are two key pieces, but Amazon is also gaining ground in online ads, subscriptions and AI chips. Amazon’s Trainium custom AI chips are already a multi-billion-dollar segment that saw 150% sequential growth. Amazon also has a large stake in Anthropic, which is Claude AI’s parent company.

Amazon is well-diversified across several segments, but it isn’t just diversified for the sake of diversification. Amazon is gaining ground in key segments, and it’s having a meaningful impact on overall revenue growth. For instance, Amazon’s advertising segment grew by 24% year-over-year, reaching $17.7 billion. Subscription revenue was up by 11% year-over-year.