Is Amazon Stock Going to $260?

Published: Sunday, February 15, 2026 at 9:55 am

Amazon Stock Faces Uncertainty After Recent Dip

Amazon's stock performance has been a mixed bag recently, experiencing a decline of over 5% since the beginning of 2026. This follows a period of positive growth in 2025. The stock took a significant hit after the release of the fourth-quarter earnings report, leading to a roughly 10% sell-off. Currently, the stock is trading approximately 20% below its all-time high, which is just under $260.

Despite the stock's recent struggles, Amazon's financial performance in the fourth quarter was strong. The company exceeded expectations, reporting revenue of $213.4 billion, a 14% increase year-over-year. Operating income also performed well, reaching $25 billion. A key driver of this success was Amazon Web Services (AWS), its cloud computing division, which saw a 24% growth rate, its best in over three years. This growth was fueled by the company's in-house custom chips, which saw revenue climb in the triple digits.

The primary concern for investors appears to be Amazon's capital expenditure guidance. The company announced plans to spend $200 billion on capital expenditures in 2026, a substantial increase from the $132 billion spent in the previous 12 months. This announcement contributed to the stock's decline. The forward price-to-earnings (P/E) ratio has also decreased, moving from the low-30s to the mid-20s.

The market's reaction suggests some skepticism regarding Amazon's significant investments, particularly in areas like artificial intelligence. The stock's future performance will likely depend on AWS's continued growth and the company's ability to demonstrate a strong return on its investments. If Amazon can consistently deliver positive results throughout 2026, the stock could potentially rebound to its all-time high and surpass the $260 mark. However, any slowdown in AWS revenue growth could negatively impact the stock's trajectory.

BNN's Perspective: The market's reaction to Amazon's increased spending highlights the current investor focus on profitability and return on investment. While the company's strong earnings are encouraging, the market is clearly in a "show-me" mood. Amazon needs to demonstrate that its investments will translate into sustained growth and profitability to regain investor confidence.

Keywords: Amazon, AMZN, stock, earnings, AWS, revenue, capital expenditures, investment, growth, cloud computing, financial performance, market analysis, stock market, Q4, PE ratio

Full Story