Skip to navigationSkip to main contentSkip to right columnADVERTISEMENTJohn Ballard, The Motley FoolSat, September 12, 2026 at 1:52 PM GMT+2 4 min readAmazon (NASDAQ: AMZN) stock has a real shot at doubling over the next four years. Analysts are projecting about 20% annual earnings growth, while the stock trades at 20 times forward earnings.Using Amazon's recent share price of $251.35 on Sept. 9, 2026, 100 shares would cost $25,135. Four years of 20% earnings growth would roughly double earnings. If the stock is still trading at 20 times earnings in four years, which is a reasonable valuation, the stock could double too, turning that stake into about $50,000.Missed Nvidia in 2009? This Rare Signal Is Flashing Again. In 2009, a "Double Down" signal flashed for a little-known chipmaker called Nvidia. For the first time in years, that same "Total Conviction" signal is flashing for a company 1/100th the size of Nvidia. Continue »What analysts seem to be counting on is double-digit revenue growth with higher margins driving faster earnings growth. This is definitely in the cards, given management's recent comments and the sources of revenue growth.Image source: The Motley Fool.Amazon's most profitable business just grew 37% year over yearAmazon's trailing 12-month revenue hit $775 billion in the second quarter of 2026, up 15.8% year over year. Most of Amazon's growth is coming from non-retail businesses that generate much higher margins than e-commerce. This includes revenue from advertising, seller services, subscriptions, and Amazon Web Services (AWS). Overall, revenue from all non-retail sources grew 24% year over year in Q2, reaching $124 billion.AWS is the main engine, with its revenue rising 37% year over year in Q2 2026 to $42 billion. Growth is accelerating, with a massive $496 billion backlog to work through.Demand for cloud services and AI compute -- especially workloads running on Amazon-designed chips -- has CEO Andy Jassy bullish about AWS's trajectory. He believes AWS could become a $1 trillion annual revenue business over time. That is significant because AWS is already doing all the heavy lifting for Amazon's profits, generating 60% of the company's operating income last quarter.Custom chips can lower costs and improve AWS marginsAmazon's earnings rose 242% year over year in Q2 to $5.75 per share, though much of that increase came from non-operating gains tied to its investment in Anthropic.Even so, margins are improving. Amazon's trailing 12-month operating margin climbed to 12.7%, up from 6.5% in 2023. That points to real leverage as revenue grows faster than operating expenses.Meanwhile, demand for Amazon's custom chips (Trainium and Graviton) is now generating more than $25 billion in annualized revenue and growing at triple-digit rates. That can lower costs for customers and, more importantly, lift AWS margins.Terms and Privacy PolicyEU DSA contactPrivacy & Cookie SettingsMore Info