Amazon.com Inc. (NASDAQ: AMZN) is receiving increased bullish sentiment from key industry analysts for the year 2026, particularly regarding its Amazon Web Services (AWS) division. Daniel Newman, CEO of Futurum Group, recently identified Amazon as one of their premier investment ideas for 2026. He acknowledged that the year so far has seen some volatility, yet emphasized that AWS's growth trajectory is just beginning to accelerate again.
Backing up this optimistic outlook is research from UBS, projecting that AWS growth could potentially double to 38% in 2026, a sharp increase from an estimated 19% growth rate in 2025. This forecast represents a substantial reacceleration and signals strong momentum in Amazon’s cloud computing business moving forward.
UBS highlighted Amazon's announcement of planned capital expenditures reaching $200 billion in 2026, which greatly exceeds prior expectations. This capital spend underpins the company’s confidence in ongoing demand for cloud and artificial intelligence (AI) services. UBS analysts expect the AWS backlog to potentially climb toward $400 billion by the end of 2026, which could facilitate sustained mid-30% growth rates into 2027 if capital intensity remains elevated at current levels.
Amazon’s executives have articulated a clear strategy behind their aggressive investment in AI, chips, robotics, and cloud infrastructure. During the company’s recent earnings call, leaders responded directly to investor concerns regarding the potential impact of high capital expenditures on returns. They reassured shareholders that demand across key technology segments remains robust, justifying the level of spending and suggesting that returns will follow as investments mature.
Recent financials bolster the positive outlook. In the fourth quarter, Amazon reported net sales of $213.39 billion, marking a 14% increase year-over-year and surpassing Wall Street expectations. AWS itself posted sales of $35.6 billion, representing a strong 24% increase from the same period a year prior. Operating income for AWS saw notable improvement as well, growing to $12.5 billion versus $10.6 billion during the previous corresponding quarter. For the full year, AWS generated revenue totaling $128.7 billion, reflecting a 20% increase compared to the prior year.
Despite these underlying strengths, Amazon’s stock has faced downward pressure in the market recently. Over the past five days, shares have declined approximately 11.76%, according to market data. While Amazon retains a strong score on quality metrics within stock ranking systems, the price trend across short, medium, and long-term horizons has been negative.
Amazon’s blend of significant capital investment in future-focused technologies and sustained sales growth through AWS positions it favorably for long-term value creation. Analysts at both UBS and Futurum Group see the company’s focus on cloud and AI expansion as a driving force to potentially elevate earnings and revenue growth in the coming years, despite short-term fluctuations in share price. Investors will continue monitoring the balance between capital intensity and emerging returns as Amazon executes its strategic growth plan.