Analysts Identify Multiple Catalysts for Amazon.com (AMZN) in 2026

Core Insights - Amazon.com, Inc. (NASDAQ:AMZN) has been identified as a top large-cap Internet stock for 2026 by Evercore ISI, highlighting its strong performance in Amazon Web Services (AWS) with a 20% year-over-year growth in Q3, marking the fastest growth rate in 11 quarters [1] - The growth rate of AWS has surpassed that of Microsoft Azure for the first time since Q3 2022, bolstered by a positive narrative surrounding artificial intelligence [1] - Analyst Mark Mahaney projects Amazon as a high-quality compounder with a 25% EPS CAGR, solid double-digit revenue growth, and expanding operating margins, with free cash flow expected to increase significantly in the next 24 months [2] AWS Growth and Future Catalysts - Beyond AWS, several catalysts for Amazon's growth have been identified, including Trainium chips, increased engagement with Alexa+, the grocery business, Amazon Pharmacy, Amazon Leo, Zoox's robotaxi service, and a renewed focus on the Amazon for Business segment [2] - The company has paused its plans for commercial drone deliveries in Italy due to regulatory challenges, despite positive engagement with local aerospace regulators [3] Business Segments - Amazon operates in various segments, including retail sales of subscription services, advertising, and consumer products through both physical and online stores, with operations in International, North America, and AWS segments [3]