Amazon Aiming for $3.7 Trillion Market Value by 2026

Investors eye Amazon as its market capitalization is projected to surge. A major earnings increase and the use of AI could drive a 54% rise in share price, leading to a potential market value exceeding Apple by year-end 2026.

Date: 19-02-2025

AI Rating: 7

Earnings per Share (EPS): Amazon's reported EPS of $5.53 has increased by 91% compared to the previous year. Analysts predict this will rise to $7.11 by Q3 2026. However, if historical underestimations hold, EPS could reach $8.53, indicating a total growth of 54% over the following quarters.

Revenue Growth: The report suggests that Amazon's earnings will grow at a rate of 17% annually through 2026, with the possibility of exceeding expectations due to efficient use of AI and expansion in the market.

Net Income: While the report does not explicitly mention net income figures, it indicates a focus on profitability through productivity and cost-saving measures, especially in their retail segment.

Profit Margins: Amazon's investments in AI may affect short-term profit margins, but they are perceived to lead to medium-term profitability as operational efficiencies improve and market share increases. Analysts are optimistic about the expansion of profit margins in the retail sector.

General Outlook: The optimistic projections for Amazon's future, particularly with its ability to leverage AI in both retail and cloud operations, indicate a very strong outlook for growth. The anticipation of a significant market increase alongside considerable earnings growth sets the stage for a favorable investment scenario for stakeholders.

Stocks: NASDAQ:AMZN