This Is the Best Magnificent 7 Stock to Buy for 2026, According to Analysts

Core Insights - The "Magnificent 7" trade, which includes major tech companies, has been successful, particularly due to the AI revolution, although not all companies have outperformed the S&P 500 last year [1] Company Performance - Amazon is identified as the worst-performing stock among the Magnificent 7 in 2025, primarily due to perceptions of its lack of proactivity in AI, despite having no negative developments [2] - Analysts predict a revival for Amazon in 2026, suggesting positive future prospects [3] Financial Performance - Amazon has achieved a market capitalization of $2.4 trillion, supported by its diverse services in retail, cloud, and streaming, with significant revenue and profitability growth [4] - Over the past decade, Amazon's revenue and earnings have shown compound annual growth rates (CAGRs) of 21.26% and 72.49%, respectively, with a market cap increase of over 15 times [4] - Recent quarterly results have consistently exceeded estimates, with Q3 2025 net sales reported at $180.2 billion, a 13% increase year-over-year, and AWS segment sales growing by 20% to $33 billion [5][6] - For Q4 2025, Amazon has guided net sales between $206 billion and $213 billion, indicating an expected annual growth of 11.5% at the midpoint [6]