Amazon Is Underperforming the S&P 500 and Nasdaq-100. Could Oct. 29 Mark a Turning Point?

Amazon (AMZN) has gained just 7% in 2026, trailing the S&P 500 (up 11%) and the Nasdaq-100 (up 16%), with Q3 earnings due Oct. 29.

The lag stems from two pressure points cited in the source: AMZN's low-margin e-commerce business and capital expenditures running at $220 billion annually. Both weigh on valuation despite what the article describes as strong underlying business fundamentals.

The bullish case rests on two growth engines named in the piece: AWS and digital advertising expansion. The article argues AI infrastructure spending should translate into future profitability, and it urges long-term investors to focus on those drivers rather than short-term catalysts around the print.

Interpretation: the 9-point gap to the Nasdaq-100 and 4-point gap to the S&P 500 suggest the market is discounting AMZN's spending load more heavily than its growth. That makes the Oct. 29 report a test of whether AWS and advertising results can offset capex concerns.

The source does not frame the earnings date as a guaranteed turning point; it positions it as a checkpoint for a longer-term thesis.