Why Amazon stock could have nearly 50% upside in 2026

Amazon's (AMZN) banal has hardly had a premier show successful 2025.

Shares of the e-commerce and unreality elephantine are lone up 6% twelvemonth to date, severely lagging the 18% beforehand for the S&P 500 (^GSPC). Experts mention slowing income maturation successful the Amazon Web Services (AWS) concern and mixed sentiment connected the company's quality to monetize artificial quality arsenic the drivers of the "mixed" sentiment.

Amazon didn't bash overmuch to bolster sentiment successful October erstwhile it announced its largest-ever circular of layoffs successful its history, eliminating 14,000 firm roles.

The banal is apt to adjacent retired the twelvemonth with the unenviable grant for worst-performing "Magnificent Seven" member.

For perspective, the apical performer of the Magnificent Seven, Alphabet (GOOG), has surged 66% this twelvemonth connected the backmost of optimism for its caller Gemini 3 model.

But Wall Street has stuck with Amazon, with immoderate adjacent putting it connected their "top picks" lists for 2026.

Evercore ISI tech expert Mark Mahaney wrote that helium thinks Amazon has astir 50% upside potential. He was 1 of the Street analysts slapping a apical prime stamp connected the stock.

Mahaney cited respective catalysts coming into absorption soon, including reaccelerating maturation astatine AWS, request for caller Trainium AI chips, further beardown maturation successful advertizing revenue, and a ramp successful the caller Alexa+.

"At the extremity of the day, Amazon remains a precocious prime compounder (25% EPS compound yearly maturation rate), with coagulated double-digit gross growth, expanding operating margins, and escaped currency travel apt to inflect up materially successful a 24-month timeframe," Mahaney said.

Yahoo Finance information shows of the 67 sell-side analysts that screen Amazon, 96% complaint the banal a Strong Buy oregon Buy. The mean $295 terms people for the Street assumes 27% upside from existent levels.

Input from Polymarket, a Yahoo Finance spouse for prediction marketplace data, reveals Main Street has a much skeptical instrumentality connected the stock, however. About 96% of users deliberation the banal volition beryllium small changed by the extremity of January 2026 compared to today.

JPMorgan expert Doug Anmuth is successful Mahaney's bull campy connected Amazon, with a much subdued projection connected the banal that estimates 30% upside potential.

Anmuth's thesis connected Amazon is akin to Mahaney's, though helium noted that Amazon's caller $38 billion, seven-year unreality services woody with OpenAI (OPAI.PVT) could "add upside" to the company's apical line.

"Amazon is the astir diversified mega-cap crossed revenues and nett and has assorted ample maturation opportunities — mixed sentiment and charismatic valuation," Anmuth added.