Amazon Aims for $3 Trillion Market Cap by 2026 Driven by AWS Growth
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Dec 29 2025
0mins
Should l Buy AMZN?
Source: Fool
- Cloud Computing Growth: Amazon's AWS generated a record $33 billion in revenue during Q3 2025, reflecting a 20% year-over-year increase, showcasing strong AI-driven momentum that is expected to continue enhancing the company's overall profitability.
- Profitability Improvement: While e-commerce remains Amazon's largest revenue source, its thin profit margins are being addressed through logistics optimization and AI technology, resulting in a 42% year-over-year increase in earnings per share to $5.22 in the first three quarters of 2025, indicating significant profitability enhancement.
- Market Expectations: Wall Street estimates Amazon's earnings per share could reach $7.86 in 2026, and if it beats expectations by 22%, the stock could rise by 35%, pushing its market cap to $3.35 trillion, further solidifying its market position.
- Order Backlog: AWS currently has a staggering $200 billion order backlog, indicating strong customer demand for data center capacity, which not only ensures sustained revenue growth but also provides robust support for Amazon's leadership in the cloud computing sector.
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Analyst Views on AMZN
Wall Street analysts forecast AMZN stock price to rise
44 Analyst Rating
41 Buy
3 Hold
0 Sell
Strong Buy
Current: 213.490
Low
175.00
Averages
280.01
High
325.00
Current: 213.490
Low
175.00
Averages
280.01
High
325.00
About AMZN
Amazon.com, Inc. provides a range of products and services to customers. The products offered through its stores include merchandise and content it has purchased for resale and products offered by third-party sellers. The Company’s segments include North America, International and Amazon Web Services (AWS). It serves consumers through its online and physical stores and focuses on selection, price, and convenience. Customers access its offerings through its websites, mobile apps, Alexa, devices, streaming, and physically visiting its stores. It also manufactures and sells electronic devices, including Kindle, Fire tablet, Fire TV, Echo, Ring, Blink, and eero, and develops and produces media content. It serves developers and enterprises of all sizes, including start-ups, government agencies, and academic institutions, through AWS, which offers a set of on-demand technology services, including compute, storage, database, analytics, and machine learning, and other services.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
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- Security Risks: In its complaint, Amazon highlighted that Perplexity's AI agents pose security risks to customer data as they can operate within protected computer systems requiring passwords, increasing the potential for data breaches.
- Advertising Business Challenges: Amazon noted that Perplexity's AI agents create challenges for its advertising business, as the generated ad traffic must be detected and filtered to ensure advertisers are billed only for legitimate human impressions, necessitating system adaptations.
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