Prediction: Amazon’s Falling Stock Will Fuel 2026 Gains | The Motley Fool

Amazon (AMZN 0.39%) is one of the best-performing stocks of the 21st century. But over the last five years, it has severely underperformed the S&P 500 index, with shares up just 26.3% vs. over 90% returns for the broad market index.

The stock fell yet again after reporting fourth-quarter earnings on Feb. 5, trading around $200 for the first time since the April 2025 tariff tantrum. Wall Street seemed disappointed by the earnings report, but I think they are focusing too much on short-term noise and underestimating the technology giant’s long-term growth potential.

Here’s why this recent stock drop will help fuel further gains for Amazon shareholders through 2026 and beyond.

Steady e-commerce margin expansion

Investors are focused on artificial intelligence (AI) right now, but Amazon still has another gigantic business with its e-commerce and retail operations. North American sales…