Analysts Identify Multiple Catalysts for Amazon.com (AMZN) in 2026

Amazon.com, Inc. (NASDAQ:AMZN) is one of the 8 best American stocks to buy and hold in 2026. On December 29, Evercore ISI named Amazon.com, Inc. (NASDAQ:AMZN) as its top large-cap Internet pick for 2026. Analyst Mark Mahaney and his team highlighted the continued momentum at Amazon Web Services, following the AWS unit’s 20% year-over-year growth in the third quarter. This marked its fastest growth rate in the 11 quarters. For the first time since the third quarter of 2022, the growth rate surpassed that of Microsoft Azure. The analyst noted that the artificial intelligence narrative surrounding AWS has become more positive, supporting investor confidence.

Mahaney expressed his views by saying:

”At the end of the day, AMZN remains a high-quality compounder (25% EPS CAGR), with solid double-digit revenue growth, expanding operating margins, and free cash flow likely to inflect up materially in a 24-month timeframe.”

Looking forward to 2026, Evercore ISI identified several additional catalysts for Amazon beyond AWS, including Trainium chips, ramping Alexa+ engagement, the grocery business, Amazon Pharmacy, Amazon Leo,  Zoox’s robotaxi service, and renewed focus on the Amazon for Business segment.

Following a strategic review, the company announced on December 28 that it had paused its plans for commercial drone deliveries in Italy.

In an emailed statement to Reuters, the company spokesperson said:

”Despite positive engagement and progress with Italian aerospace regulators, the broader business regulatory framework in the country does not, at this time, support our longer-term objectives for this program.”

Amazon.com, Inc. (NASDAQ:AMZN) is involved in the retail sale of subscription services, advertising, and consumer products through physical and online stores. It operates in the International, North  America, and Amazon Web Services (AWS) segments.

While we acknowledge the potential of AMZN as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you’re looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock.

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Disclosure: None. This article is originally published at Insider Monkey.