CNBC stock expert Jim Cramer recently initiated bullish coverage on Amazon (AMZN) stock, suggesting it’s a must-buy in 2026. Amazon shares only rose 5% in the past year, one of the weakest performances among the Magnificent-7. However, its AI prospects are booming, and AWS cloud computing has proven successful. Should this trend continue in 2026, according to Cramer, AMZN could be a valuable investment opportunity.
“I can’t deny I’ve been wrong about Amazon for the past four odd years,” Cramer said on his show earlier this month. “But let me tell you how I think about this. I’m not wrong. First, the tribal trust takes a long-term view, longer than the period since Andy Jassy took over as CEO after running the incredibly successful Amazon Web Services. I talk a lot about time frames and how to make money in any market. You need stocks that you can work on for long, long periods of time, longer than Jesse’s tenure. I make it clear that as long as you still like what the company does, and I sure do with Amazon Prime.”
Jim Cramer isn’t the only bull that’s all-in on Amazon’s rebound in 2026. Another recent bullish forecast for Amazon (AMZN) comes from Evercore ISI tech analyst Mark Mahaney. The expert thinks Amazon has about 50% upside potential next year, also labeling AMZN as a top pick. Mahaney particularly praised growth at AWS, growing demand for new Trainium AI chips, further strong growth in advertising revenue, and a ramp in the new Alexa+. “At the end of the day, Amazon remains a high-quality compounder (25% EPS compound annual growth rate), with solid double-digit revenue growth, expanding operating margins, and free cash flow likely to increase materially in a 24-month timeframe,” Mahaney said.
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Furthermore, Truist Securities analyst Youssef Squali forecasts Amazon’s growth at 10.5% in 2026, down from 12.1% in 2025, fueled by strong growth factors and AI-driven services. Amazon’s proposed deal with OpenAI could prove a worthy catalyst to send AMZN shares higher next year. Indeed, the e-commerce giant is in talks with Sam Altman’s OpenAI, which hosts the world’s top AI platform ChatGPT, for a potential investment of $10 billion.
