📈 Amazon Tipped by Evercore ISI to Outperform in 2026 | AWS & AI Momentum
Amazon (AMZN) has been named Evercore ISI’s top large-cap Internet stock for 2026, driven by strong momentum in AWS and expanding AI initiatives. Analyst Mark Mahaney highlighted the company’s solid growth trajectory, diverse business segments, and long-term potential for investors.
☁️ AWS Drives Growth
Amazon Web Services (AWS) delivered 20% year-over-year growth in Q3 2025, the fastest in 11 quarters, outpacing Microsoft Azure for the first time since Q3 2022. Analysts see AI initiatives boosting AWS further, supporting positive investor sentiment into 2026.
- ☁️ AWS 20% YoY growth, fastest in 11 quarters
- 🤖 AI integration driving cloud innovation
- 📊 Outpaces Microsoft Azure growth
🚀 Additional Growth Catalysts
Other key drivers for Amazon’s growth include:
- 🛒 Grocery business expansion
- 💻 Trainium chips and Amazon Leo AI initiatives
- 🏥 Amazon Pharmacy growth
- 🎙️ Ramp-up of Alexa+ engagement
- 🤖 Zoox robotaxi service
- 🏢 Amazon for Business segment revival
Evercore ISI emphasizes that Amazon remains a high-quality compounder, with a 25% EPS CAGR, strong double-digit revenue growth, expanding operating margins, and free cash flow expected to improve over the next 24 months.
📊 Wall Street Sentiment
Amazon enjoys robust market confidence, with 64 Buy-equivalent ratings versus just three Hold-equivalent ratings. The Seeking Alpha Quant Rating is more cautious, reflecting valuation concerns, but overall sentiment remains bullish.
Year-to-date, AMZN shares are up 6%, slightly trailing broad U.S. stock market averages but well-positioned for continued 2026 growth.
💬 Investor Discussion
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⚠️ Informational purposes only. Not investment advice.