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Amazon shares lag the S&P 500 despite AWS growth and AI push
AWS revenue jumped 28% to $37.6 billion in Q1 2026, and Amazon raised its Q2 revenue forecast to a $194 billion to $199 billion range.
Amazon has a market capitalization of about $2.3 trillion, but its stock has lagged the broader market over the past 52 weeks, according to Yahoo Finance. Over that span, Amazon shares fell marginally while the S&P 500 rose more than 16%, and Amazon is up only slightly year to date versus the S&P 500's 8.3% gain.
The report points to recent momentum from Amazon Web Services and its AI strategy. After Amazon's Q1 2026 results on April 29, AWS revenue increased 28% to $37.6 billion, above expectations, and total net sales rose to $181.5 billion, supported by enterprise AI spending.
Amazon also reaffirmed a $200 billion AI investment plan for 2026, and highlighted that AWS AI services were generating more than $15 billion in annualized revenue. In addition, the company forecast Q2 revenue of $194 billion to $199 billion, ahead of analysts' estimates, while advertising revenue grew 24% to $17.2 billion.
Looking further ahead, analysts cited in the piece expect Amazon EPS to rise 8.2% year over year to $7.76 for the fiscal year ending in December 2026. The report also notes Amazon's mixed earnings surprise record, with the company beating expectations in two of the past four quarters and missing the other two.
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