Daniel Newman Backs Amazon As UBS Forecasts AWS Growth Doubling To 38% In 2026: ‘One Of Our Best Ideas,’ Says Futurum CEO

On Sunday, Amazon.com, Inc. (NASDAQ:AMZN) drew a bullish call from Futurum Group CEO Daniel Newman, who said the stock is one of their “best ideas” for 2026, echoing a UBS forecast.

Newman, UBS Align On Amazon’s 2026 Upside

Newman said on X that Amazon is “one of our best ideas for ’26,” acknowledging a choppy start but arguing that Amazon Web Services’ growth is only beginning to reaccelerate.

He cited UBS research that projects AWS growth could double to 38% in 2026, up from an estimated 19% in 2025.

$AMZN is one of our best ideas for ‘26. Not the best start but we think its AWS growth is just getting started. UBS agrees. pic.twitter.com/U0uWeHmzFM

— Daniel Newman (@danielnewmanUV) February 8, 2026

UBS Sees Explosive AWS Growth, Strong Earnings Leverage

UBS said Amazon’s disclosure of $200 billion in 2026 capital expenditures far exceeded expectations, but reflects sustained demand for cloud and AI services.

The bank expects AWS backlog to ramp toward $400 billion by the end of 2026, supporting mid-30% growth into 2027 if capital intensity remains elevated.

Amazon Defends AI Spending As Returns Show Up

Amazon executives have pushed back against investor concerns that heavy spending on AI and data centers could pressure returns.

During the company’s latest earnings call, the executives said demand remains strong across AI, chips, robotics and cloud infrastructure, justifying aggressive investment.

Amazon reported fourth-quarter net sales of $213.39 billion, up 14% year over year, topping Wall Street expectations, according to Benzinga Pro.

AWS reported $35.6 billion in sales, marking a 24% year-over-year increase. AWS’s operating income rose to $12.5 billion, up from $10.6 billion a year earlier.

For the full year, AWS generated $128.7 billion in revenue, reflecting 20% growth from the prior year.

Price Action: Amazon shares are down 11.76% in the past five days, according to Benzinga Pro.

Amazon shares rank strongly on the Quality metric in Benzinga’s Edge Stock Rankings, while showing a negative price trend across short, medium and long-term time horizons.

Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.

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