The technology giant has underperformed the S&P 500 over the last five years.
Did you know that Amazon (AMZN +0.21%) has actually underperformed the stock market indexes over the last five years? In that time frame, the S&P 500 index is up 98%, while Amazon’s share price has risen by only 40%.
While that’s not a terrible outcome, this is an unexpected development for one of the investing world’s beloved technology stocks, which led the pack in both cloud computing and e-commerce in North America.
However, Amazon’s underlying business still appears to be performing well. Does that make the stock undervalued and a buy for your portfolio in 2026?
Accelerating cloud growth
Amazon has been deemed a loser in the artificial intelligence (AI) race, as revenues for its cloud computing division, Amazon Web Services (AWS), have grown more slowly than those of rivals Google Cloud and Microsoft Azure.
However, last quarter, AWS’ growth did accelerate to 20% year over year as its revenue hit $33…
https://www.fool.com/investing/2025/12/20/should-you-buy-amazon-stock-in-2026/
