Prediction: Amazon Will Soar in 2026. Here's 1 Reason Why.

Core Insights - Amazon is the leading player in e-commerce with a gross merchandise volume (GMV) of $790 billion in 2024, experiencing a 10% year-over-year sales growth in Q3 [1] - The company has multiple avenues for future growth, supported by substantial cash flow from online sales [2] - Amazon Web Services (AWS) holds a 29% market share in the cloud infrastructure sector, with a 20% year-over-year revenue growth in Q3, contributing 18% to total revenue and 60% to operating income [4] - Advertising revenue has increased by 24% in Q3, making Amazon the third-largest advertiser globally, accounting for 10% of total revenue [5] - Subscription services, including Amazon Prime, have seen an 11% year-over-year growth, representing 7% of total revenue [7] - The company has a diverse range of revenue streams, including AI-related sales integrated into AWS, advertising, and e-commerce [8] E-commerce Performance - Amazon's GMV reached $790 billion in 2024, with a 10% increase in sales year-over-year in Q3 [1] Cloud Services - AWS leads the cloud market with a 29% share, significantly ahead of competitors Microsoft Azure and Google Cloud [4] - AWS revenue grew by 20% year-over-year in Q3, contributing 18% to total revenue and 60% to operating income [4] Advertising Growth - Amazon is now the third-largest global advertiser, with ad revenue increasing by 24% in Q3, accounting for 10% of total revenue [5] Subscription Services - Subscription revenue, including Amazon Prime, grew by 11% year-over-year, making up 7% of total revenue [7] Overall Business Strategy - Amazon's diverse revenue streams and growth potential position it favorably in the market, with a current price-to-earnings ratio of 32 [8]