On January 4, 2026, financial outlets identified a potential buying opportunity for Amazon (AMZN) stock. Analysts noted a significant disconnect between the company’s strong 2025 financial performance and its modest 5% stock gain for the year.
Reports emphasized robust growth in Amazon’s high-margin segments. These key drivers include Amazon Web Services (AWS) and online advertising, which the market appears to have overlooked.
Analysts agree that Artificial Intelligence (AI) serves as a major tailwind. Increasing demand for cloud computing to power AI applications partly attributes to the acceleration of AWS revenue growth.
The subdued market reaction in 2025, despite strong revenue and net income growth, suggests the stock may be undervalued. Analysts project this undervaluation sets the stage for a 2026 rally as Amazon capitalizes on its AI initiatives.