Amazon (AMZN) remains Stifel’s top pick in eCommerce and marketplaces, according to analyst Mark Kelly, who reiterated a Buy rating on the stock. Kelly said Amazon stands out this year not because of its core online retail business, but due to improving trends at Amazon Web Services (AWS), the company’s cloud computing unit, rising advertising demand, and benefits from Amazon’s own chips.
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It is worth noting that Kelly ranks 258 out of more than 10,000 analysts tracked by TipRanks. He has a success rate of 63%, with an average return per rating of 24.10% over a one-year timeframe.
Why Kelly Says ‘Amazon Is the Stock to Own in 2026’
Stifel said Amazon’s strength this year is not coming from online retail. Instead, the firm pointed to three key drivers:
AWS growth is set to improve. Kelly expects cloud growth to pick up in 2026 as more capacity comes online, which should support revenue and margins.
Amazon’s custom chips could lift efficiency. Stifel said Amazon’s in-house chips can lower hardware costs and run workloads more efficiently at AWS, which could boost profitability over time.
Advertising remains a solid tailwind. Stifel pointed to Prime Video as a major opportunity. As advertising dollars continue to move away from traditional TV to digital platforms, Kelly believes Prime Video is well placed to benefit going forward.
Is Amazon a Buy, Sell, or Hold?
Turning to Wall Street, analysts have a Strong Buy consensus rating on AMZN stock based on 46 Buys and one Hold assigned in the past three months, as indicated by the graphic below. Furthermore, the average AMZN price target of $294.55 per share implies 19.07% upside potential.
