Is Amazon One of the Best Stocks to Buy for 2026?

Group 1 - Amazon's stock performance in 2025 has been disappointing, remaining flat while the S&P 500 increased by approximately 14%, leading to hopes for a better 2026 [1] - Despite a slowdown in operating income growth, Amazon's revenue growth has remained in the low double-digits, which is typical for a mature business [3] - Valuing Amazon based on operating income is prudent due to its significant investments, and its valuation has decreased throughout 2025, aligning more closely with peers like Alphabet and Microsoft [4][5] Group 2 - Amazon Web Services (AWS) is the primary profit driver, contributing 66% of operating income while only accounting for 18% of revenue, with AWS revenue growing at a 20% rate in Q3 [6] - The growth of AWS is reaccelerating, which is promising for 2026, especially as it begins to capture more AI workloads with new chip technology [7] - Amazon has introduced its Trainium3 chips, which have shown to significantly reduce costs for generative AI companies, indicating competitive strength in the AI market [8]