After a Disappointing 2025, Here's My Favorite "Magnificent Seven" Stock in 2026

Group 1: Market Performance - The U.S. stock market had a positive performance in 2025, with the S&P 500 up more than 16%, the Nasdaq Composite up over 20%, and the Dow Jones Industrials up close to 13% [1] - The "Magnificent Seven" stocks, driven by the AI boom, performed well, although Amazon underperformed with a 5% increase, the lowest among these stocks [2] Group 2: Amazon's E-commerce Efficiency - Amazon's e-commerce business has become more efficient, historically generating significant revenue, often exceeding that of many S&P 500 companies in a fiscal year [4] - The company has invested heavily in robotics and automation, which has allowed it to cut costs and increase efficiency, projecting savings of up to $4 billion with nearly 40 robotic fulfillment centers by year-end [6] Group 3: Amazon's Business Segments - Amazon Web Services (AWS) is crucial to the company's overall business, accounting for about 18% of total revenue ($33 billion) but over 65% of total operating income ($11.4 billion) in Q3 [7] - The advertising business is Amazon's fastest-growing segment, expected to outpace AWS, with a year-over-year growth of 24% [8][9]