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Barchart
Sneha Nahata

Amazon Stock: Rebound Ahead or Prolonged Bearish Pressure in 2026?

Amazon (AMZN) stock has lagged its Big Tech peers over the past year, rising approximately 6% over the last 12 months but down about 7% year-to-date (YTD), making it one of the weakest performers within the “Magnificent Seven” group. This underperformance reflects mounting competitive pressures in its most profitable segment and rising concerns about future margins.

The primary source of investor caution is Amazon Web Services (AWS), the company’s high-margin cloud computing division. AWS faces intensifying competition from Google Cloud, owned by Alphabet (GOOGL), and Microsoft (MSFT) Azure. Both rivals continue to expand aggressively, investing heavily in infrastructure and artificial intelligence (AI) capabilities to gain market share. As enterprise customers diversify cloud providers and demand advanced AI functionality, AWS is operating in an increasingly competitive environment.

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