3 Reasons to Buy Amazon Stock in 2026: Robotics & AI Growth

The values of the wealth of Amazon have shown a strong positive trend, and despite existing cynics, the share value has been reported to be at $239.12 on January 16, 2026. 

The firm has a market capitalization of 2.6 trillion, though this has been increasing by a relatively small 5 % in the year 2025 a number that is still low when compared to the S&P 500 and the Nasdaq Composite. 

Under this layer, there is a growth of robotics, and the unabated popularity of cloud-related services that are creating powerful signals of a looming breakout as well as the explosive growth of advertising.

1. E -Commerce Operation and Profitability

The A3 of e-commerce in Amazon has ceased to produce negative operating margins to a profitable state earned after the systematic automation. By the end of 2026, the firm plans on having 40 robot-equipped fulfillment centers, an action expected by Morgan Stanley to save the company $4 billion in its operations costs. 

Additionally, according to Morgan Stanley, if 30% to 40% of Amazon’s U.S. purchases were processed through its next-generation warehouses by 2030, the company could save roughly $10 billion a year.

More than 1 million robots are currently working around the globe since middle 2025, which has led to a shift of historic losses leading to sustainable gains. In contrast to the Wall Street estimate of $177.8 billion (+1.3% vs. consensus), Amazon.com, Inc. reported Q3 FY 2025 revenue of $180.2 billion, up 13% year over year (YoY).

2. Expansion of the Amazon Web Services

Amazon Web Services (AWS) holds a three-quarters (29%) market share of the cloud infrastructure market against Microsoft Azure (20%) and Google Cloud (13%). 

During the third quarter, the AWS income increased by 20.2% to $33 billion, which was mainly due to artificial-intelligence workloads. 

According to the company’s fourth-quarter guidance, operating income is anticipated to reach $21 billion to $26 billion, while total revenues are projected to be between $206 billion and $213 billion, indicating growth of 10% to 13%. 

This forecast shows management’s confidence going into the crucial holiday season and early 2026, especially as businesses continue to move legacy infrastructure to the cloud and implement generative AI applications at the same time.

3. Growth of Advertisement Segment

Advertising has grown to be the most profitable part of Amazon by using customer information to realize gains in the double-digit and to compete with the amount of money that e-commerce produces. The advertising revenue is used to fund the further investment in AWS and automation which generates a cycle of virtue. 

According to Morgan Stanley, as Amazon increases automation throughout its logistics network, the company’s quick growth of robotics-powered fulfillment centers could result in annual savings of between $2 billion – $4 billion by 2027.

An optimistic re-evaluation indicates that, when the proposed AI integration of all segments is made, an increase in revenue can be realized through 2026, and it can be overelected that Amazon will outdo its competition in a booming marketplace.

The Way Forward

The rising e-commerce profitability at Amazon, the ongoing leadership of AWS supported by the AI demand and the fast growing, high-margin advertising business are all strong reasons in favor of upside in the future. 

These are interdependent drivers that place the firm in a positive strategic position to gain sustainability of earnings and possibly outperformance up to 2026, which makes the equity a good long-term investment.

Warisha Rashid

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