Growth in cloud computing remains the biggest opportunity.
Shares of Amazon (AMZN 0.06%) underperformed in 2025, posting a total return of 5.2% compared to a 17.9% return for the S&P 500 index. However, one reason this underperformance is unlikely to persist in 2026 is the growth in Amazon’s cloud computing business.
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Why buy Amazon stock
Growth for Amazon Web Services (AWS) grew 17% year over year in the first half of 2025. However, growth accelerated to 20% year over year in the third quarter.
Today’s Change
(-0.06%) $-0.14
Current Price
$247.24
Key Data Points
Market Cap
$2.6T
Day’s Range
$246.31 – $248.28
52wk Range
$161.38 – $258.60
Volume
398K
Avg Vol
45M
Gross Margin
50.05%
AWS remains the cloud leader, but its revenue growth has been capped by a lack of sufficient compute capacity to meet demand. This limited the segment’s growth in 2025; however, Amazon plans to double its capacity by the end of 2027, which could lead to higher top-line growth.
Amazon could be…
https://www.fool.com/investing/2026/01/12/1-reason-amazon-stock-outperform-in-2026/
