Evercore ISI Analyst Predicts Big Gains: Amazon, Expedia, and Zillow Top Internet Stock Picks for 2026
New York, NY – In a move that’s already sending ripples through Wall Street, senior analyst Mark Mahaney of Evercore ISI has unveiled his top internet stock selections for 2026. The list, featuring both established giants and promising mid-sized players, highlights Amazon (AMZN), Expedia (EXPE), and Zillow (Z) as particularly well-positioned for substantial growth. This breaking news comes as investors eagerly seek opportunities in a dynamic tech landscape. The analysis, focused on improving fundamentals and undervalued narratives, offers a compelling outlook for the coming years. This isn’t just about picking winners; it’s about understanding *why* these companies are poised to outperform.
Amazon: Riding the AI Wave and Boosting Cash Flow
Mahaney’s top large-cap pick is Amazon, and for good reason. The analyst points to a significant shift in perception surrounding Amazon Web Services (AWS) and its potential within the burgeoning field of artificial intelligence. “The AI narrative has taken a positive turn for Amazon Web Services,” Mahaney explained, emphasizing AWS’s strategic advantage in capturing the increasing enterprise demand for generative AI solutions. But the story doesn’t end with cloud computing. Mahaney anticipates a substantial increase in Amazon’s free cash flow over the next two years, a development that could unlock significant shareholder value.
The “Buy” rating on AMZN comes with a $335 price target – a potential 45% jump from current levels. This optimism is further fueled by Amazon’s high-margin advertising business, which is expected to continue its impressive growth trajectory. Evergreen Insight: Amazon’s diversification strategy, moving beyond its e-commerce roots into cloud computing, advertising, and even healthcare, has proven remarkably resilient, shielding it from economic downturns and positioning it for long-term success. Understanding this diversification is key to appreciating its continued potential.
Expedia: An Undervalued Recovery Story
Mahaney expresses strong confidence in Expedia’s new leadership team and their ability to orchestrate a successful turnaround. The focus is on streamlining the EXPE platform and enhancing the customer experience – improvements that, according to Mahaney, aren’t yet fully reflected in the stock price. The numbers back up this assessment: Expedia currently trades at a price-to-sales (P/S) multiple of just 2.57, a significant discount compared to its competitors, despite demonstrable signs of operational improvement.
The analyst projects a potential upside of around $350 for EXPE stock in 2026, suggesting that investors who can look past short-term skepticism could reap substantial rewards. Evergreen Insight: The travel industry is historically cyclical, but Expedia’s scale and brand recognition provide a competitive edge. Investing in travel companies requires understanding these cycles and identifying those best positioned to capitalize on the inevitable rebound. Post-pandemic travel trends, like the rise of “revenge travel” and experiential tourism, are also crucial factors to consider.
Zillow: A Long-Term Play After a Recent Dip
In the small- and mid-cap space, Mahaney’s top pick is Zillow. The stock has experienced a recent pullback, losing over 20% in the last four months, which Evercore ISI views as a rare buying opportunity for long-term investors. Mahaney believes that increasing challenges in housing affordability will drive more consumers to online listings and rental options, benefiting Zillow’s digital platform. He anticipates a rebound as market conditions stabilize.
A “Buy” rating accompanies a $95 price target for Zillow, representing roughly 35% upside potential. However, it’s worth noting that Zillow, like the other companies on Mahaney’s list, doesn’t currently offer dividends, making it less appealing to income-focused investors. Evergreen Insight: The real estate market is heavily influenced by macroeconomic factors like interest rates and economic growth. Zillow’s success hinges on its ability to adapt to these changing conditions and provide valuable tools and data to both buyers and sellers. The increasing digitization of the real estate process is a long-term trend that Zillow is well-positioned to leverage.
Mark Mahaney’s insights offer a compelling roadmap for investors navigating the complexities of the internet stock market. His focus on fundamental strength, attractive valuations, and evolving narratives provides a valuable framework for identifying opportunities poised for growth in 2026 and beyond. Stay tuned to Archyde for continued coverage of these developing stories and expert analysis to help you make informed investment decisions.
