As the books close on 2025, what's top of mind among investors is which stocks will deliver strong returns in 2026. In terms of "Magnificent Seven" stocks, all eyes may be on how Nvidia or Microsoft perform from here. But another Magnificent Seven component you may want to take a closer look at is Amazon (AMZN 1.58%).
Based on the latest major sell-search research published on the e-commerce and cloud computing giant, shares may be in for a moderately strong rally over the next 12 months.
With this in mind, let's take a closer look and see how this plays into Amazon price predictions for 2026.
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Amazon analysts raise their respective price targets
As one of the world's largest companies by market cap, Amazon receives heavy coverage from the sell-side analyst community. Since the start of December alone, analysts at two firms, Wells Fargo and Oppenheimer, have each issued ratings updates.
At Wells Fargo, analyst Ken Gawrelski reiterated his "overweight" rating on Amazon, raising his price target from $292 to $295 per share. Analysts at Oppenheimer also reiterated their "outperform" rating, raising their price target from $290 to $305 per share.
NASDAQ: AMZN
Key Data Points
Averaging out these two price targets results in a price target of around $300 per share. And $300 per share is a nice, round number. Split-adjusted, hitting it would also represent a new share price milestone.
Better yet, besides these two factors, there's something else about $300 per share: Hitting it is perfectly attainable within the next 12 months.
One reason why there's a clear path to $300 per share
Yes, when it comes to share price appreciation, it's typically several factors, working together, that drive a stock to materially higher prices. In the case of Amazon and its potential to reach $300 per share by December 2026, a similar dynamic is at play. Earnings growth remains a major catalyst for the Magnificent Seven component.
The top end of sell-side forecasts call for Amazon to report earnings of $8.92 per share next fiscal year. This implies that shares sell for as little as 26 times forward earnings right now. That's a fair multiple, in line with the forward price-to-earnings (P/E) ratios of other Magnificent Seven stocks. Still, these stocks could experience valuation expansion in 2026.
Before fears of an AI slowdown fueled a pullback earlier this year, top tech stocks like Amazon were selling for nearly 35 times forward earnings. A return to such high valuations may be in the cards. With inflation easing, the chances of further rate cuts from the Federal Reserve may be climbing higher.
Lower interest rates are typically a positive for growth stock valuations. Moreover, further evidence may emerge that the AI boom will continue unabated in 2026, fueling a sectorwide rerating for AI-exposed major tech stocks.
The bottom line
If Amazon meets or beats current earnings projections, and rerates to a mid-30s forward P/E, the stock could climb above $300 per share, specifically to around $312 per share.
Considering this path to the upside, as Amazon shares start slowly bouncing back, you may want to consider grabbing a position before this rebound gains further momentum.
