Amazon.com Inc. bulls believe the company’s shares are poised to reclaim market leadership after years of lagging behind Big Tech rivals.
The optimism centers on rising demand for Amazon Web Services (AWS), positioned to benefit from the rapid expansion of artificial intelligence. AI is also expected to enhance Amazon’s core e-commerce unit, improving ad targeting and boosting efficiency across its vast logistics network.
Pat Burton, portfolio manager at Winslow Capital Management, said: “An improvement in AWS should materially shift perceptions of Amazon’s stock, which has been seen as the cloud laggard.”
In 2025, Amazon shares were the worst performers among the “Magnificent Seven,” gaining just 5% compared to the Nasdaq 100’s 20% surge. Early 2026 has brought a reversal: shares are up slightly, even after Tuesday’s 3.4% drop, trailing only Alphabet as the rest of the group sold off to start the year.
