A Resurgent Leader Emerge

The market’s most underappreciated performer of 2025 is Amazon, which quietly posted a record-breaking year despite a slowdown in e-commerce growth. Amazon’s shares have surged over 50% since the start of the year, driven by a combination of factors including the company’s diversification into new areas such as cloud computing and advertising. The company’s AWS division, in particular, has seen significant growth, with revenue increasing by 30% year-over-year. This growth has been driven by increased demand from companies looking to migrate their infrastructure to the cloud. In addition to its cloud business, Amazon is also seeing significant growth in its advertising segment. The company’s ad revenue has surged over 50% in the past year, as more businesses look to Amazon as a platform for reaching their customers. Despite the strong performance of these segments, Amazon’s stock price remains relatively undervalued compared to its peers. With a forward P/E ratio of around 20, Amazon’s shares offer a compelling value proposition for investors looking to buy quality companies at a discount. As the company looks to continue its growth trajectory in 2026, there are several factors that could contribute to further upside. These include the expansion of AWS into new markets, as well as the continued growth of Amazon’s advertising business. However, as with any investment, there are also potential risks to consider. Amazon faces increasing competition in both cloud and ad spaces, which could put pressure on its profit margins. Overall, while Amazon is not a traditional “buy” stock, it offers investors an opportunity to buy a high-quality company at a reasonable price. With its diversified revenue streams and growing growth prospects, Amazon is an investment that is definitely worth considering for 2026.