--- title: "2026, Amazon's year of self-validation" type: "Topics" locale: "en" url: "https://longbridge.com/en/topics/37285440.md" description: "Have to admit that in the past two years, the shareholding experience of Amazon $Amazon(AMZN.US) has been worse compared to others. In the afternoon, I checked Amazon's progress in the robotics field and accidentally saw that Friday's stock price of 227.3 was exactly the same as on December 6, 2024. 😅, but over the past year, Amazon: EPS growth: +36.4% Revenue: +13.4% Profit margin: +38.2% 2026 is crucial because computing power is defined as the water, electricity, and coal of AI, which means its price cannot be too high..." datetime: "2025-12-20T16:24:06.000Z" locales: - [en](https://longbridge.com/en/topics/37285440.md) - [zh-CN](https://longbridge.com/zh-CN/topics/37285440.md) - [zh-HK](https://longbridge.com/zh-HK/topics/37285440.md) author: "[巴菲Te北京分特](https://longbridge.com/en/profiles/897160.md)" --- # 2026, Amazon's year of self-validation I have to admit that in the past two years, the stock-holding experience of Amazon $Amazon(AMZN.US) has been worse compared to a few others. This afternoon, while checking Amazon's progress in the robotics field, I coincidentally saw that Friday's stock price of 227.3 was exactly the same as on December 6, 2024. 😅, but over the past year, Amazon: 1. EPS growth: +36.4% 2. Revenue: +13.4% 3. Profit margin: +38.2% 2026 is crucial because computing power is defined as the water, electricity, and coal of AI, which means its price cannot be too high. The upper-layer enterprises of AI applications need to make money, meaning the business model must be viable and validated, for AI applications to flourish and become widespread. Below are the current computing power prices of the three major clouds ☁️: ▸ Google GCP (A3-high): $3.0/card·hour (lowest in 2025Q4, no premium) ▸ Amazon AWS (P5 instance): $3.9/card·hour ▸ Microsoft Azure (NCH100 v5): $6.98/card·hour From a price perspective, Amazon has a significant cost advantage, and it can continue to decrease, thanks to its self-built data centers and self-developed chip computing power. Microsoft currently has no large-scale self-developed chip deployment, and its computing power costs rely entirely on the price of NVIDIA $NVIDIA(NVDA.US) cards. Given the price advantage, it's foreseeable that AWS's growth rate will continue to rise. As for electricity, the three companies handle data center power differently. Amazon, like building its logistics system, is constructing its own power plants, with power generation and energy storage centers near its data centers. 😅, this is a capital-intensive move, and the risk is borne by itself. Google and Microsoft have chosen to cooperate with existing power plants to secure electricity. The market may not approve of Amazon's approach, as the investment is too large and significantly impacts the income statement. However, as secondary market investors, we need our own perspective. Mr. Duan said: "Buying stocks is buying companies. Do the right things, and do things right." I think this makes a lot of sense. I believe Amazon is doing the right thing, regardless of how the market views its capital investments. Microsoft's CEO mentioned in a podcast interview that they have a large number of NVIDIA cards sitting idle, not because they can't sell them, but because of a lack of electricity. This highlights two issues: first, AI demand is huge, and power supply can't keep up. Returning to Amazon's self-built power plants, it's actually solving its own power shortage problem, ultimately aiming for pricing power in computing. So, in the long run, it's about doing the right things right, and infrastructure has always been Amazon's strength. Regarding progress in robotics, Amazon's robots 🤖 are designed to improve efficiency and reduce costs, used only in specific scenarios at scale, making it hard to evaluate the gap with $Tesla(TSLA.US)'s Optimus general-purpose robot. So, let's wait and see. 😂. The autonomous driving Zoox is also for specific scenarios. Amazon seems uninterested in general-purpose designs, focusing instead on perfecting certain scenarios or directions, which is also a good business model. 😀 I remain optimistic about Amazon in 2026. 👋👋, good night, everyone. ### Related Stocks - [MSFT.US](https://longbridge.com/en/quote/MSFT.US.md) - [NVDA.US](https://longbridge.com/en/quote/NVDA.US.md) - [TSLA.US](https://longbridge.com/en/quote/TSLA.US.md) - [GOOG.US](https://longbridge.com/en/quote/GOOG.US.md) - [GOOGL.US](https://longbridge.com/en/quote/GOOGL.US.md) - [AMZN.US](https://longbridge.com/en/quote/AMZN.US.md) - [MSFL.US](https://longbridge.com/en/quote/MSFL.US.md) - [MSFO.US](https://longbridge.com/en/quote/MSFO.US.md) - [MSFD.US](https://longbridge.com/en/quote/MSFD.US.md) - [MSFU.US](https://longbridge.com/en/quote/MSFU.US.md) - [MSFX.US](https://longbridge.com/en/quote/MSFX.US.md) - [MSFY.US](https://longbridge.com/en/quote/MSFY.US.md) - [NVDL.US](https://longbridge.com/en/quote/NVDL.US.md) - [07788.HK](https://longbridge.com/en/quote/07788.HK.md) - [07388.HK](https://longbridge.com/en/quote/07388.HK.md) - [NVDY.US](https://longbridge.com/en/quote/NVDY.US.md) - [NVDD.US](https://longbridge.com/en/quote/NVDD.US.md) - [NVDX.US](https://longbridge.com/en/quote/NVDX.US.md) - [NVDQ.US](https://longbridge.com/en/quote/NVDQ.US.md) - [TSDD.US](https://longbridge.com/en/quote/TSDD.US.md) ## Comments (19) - **Kiko Deng · 2026-06-26T02:59:08.000Z**: Your yield has dropped from 1% to 6#, seems like a significant impact - **螺旋丸爆锤空军 · 2026-03-13T07:28:09.000Z**: Amazon isn't broken, I am🤦🏻‍♂️🤦🏻‍♂️🤦🏻‍♂️ - **巴菲Te北京分特** (2026-03-13T07:32:50.000Z): Quite resilient, isn't it? - **Neo_zzZ · 2025-12-30T07:41:30.000Z**: No idea when it will start, only rose 5 points in 26 years😂 - **巴菲Te北京分特** (2025-12-30T08:09:48.000Z): One expectation is clear: it will rise from this position. As for when it will rise, just leave it to time. We only need to bet on a certain rise and hold on to it. - **跟顾神反着买 · 2025-12-21T09:26:38.000Z · 👍 1**: Google was also very poor before June, the best this year. Tesla is about the same - **巴菲Te北京分特** (2025-12-21T09:32:43.000Z): Yes, agree - **跟顾神反着买** (2025-12-21T11:24:32.000Z): Wait for the stock god to make a move and see if it's really that exaggerated - **Jason4HK · 2025-12-21T06:46:29.000Z · 👍 1**: NVIDIA's GPUs consume a lot of power, and the infrastructure in the 🇺🇸 simply can't keep up, making it impossible to compare with 🇨🇳. As for Amazon's self-developed chips, power consumption data is temporarily unavailable. However, if Amazon can invest heavily to solve the power issue, high powe - **巴菲Te北京分特** (2025-12-21T07:24:22.000Z): Power consumption data is publicly available and can be checked. Currently, the power consumption of Trainium3 chips is completely ahead of NVIDIA chips. Below is the data I found.✅Core quantitative c - **Jason4HK** (2025-12-21T10:15:08.000Z): Then the breakout we're waiting for will bounce very, very high - **爪爪啊 · 2025-12-21T05:23:13.000Z · 👍 2**: I also hold a position in Amazon, and it's all in. I like to go all in on stocks I'm bullish on. 🤓, standing with Fante. 🧐 - **巴菲Te北京分特** (2025-12-21T05:36:23.000Z): You're still the best… - **新用户Hejw4613iwqd** (2025-12-22T01:23:31.000Z): That's awesome, but don't miss other opportunities.This requires a long wait. - **爪爪啊** (2025-12-22T07:12:17.000Z): In the stock market, there are plenty of opportunities, and it's impossible to catch every one. Pick one, buy it, and wait. - **素时听风 · 2025-12-21T02:13:26.000Z · 👍 2**: Amazon's investment is too heavy, and the free cash flow is too little, which makes the stock price unable to rise. On the contrary, this is down-to-earth. - **图图要有耐心 · 2025-12-21T01:55:17.000Z · 👍 1**: Rising is just a matter of time. Google didn't rise much in the past few years either 🤣🤣🤣. Hard work will eventually pay off. Stay with Finty.