Amazon (AMZN) is Evercore ISI’s top large-cap Internet pick for 2026.
Analyst Mark Mahaney and his team pointed to AWS momentum after the business showed 20% year-over-year growth in Q3, which was the fastest in 11 quarters and handily outpaced Microsoft (MSFT) Azure’s growth rate for the first time since Q3 of 2022. Mahanay thinks the AI narrative has flipped positive for AWS to help support investor sentiment.
Other potential catalysts seen for Amazon (AMZN) in 2026 include the grocery business, Trainium chips, Amazon Leo, Amazon Pharmacy, ramping Alexa+ engagement, Zoox’s robotaxi service, and the all-but-forgotten Amazon for Business segment.
“At the end of the day, AMZN remains a high-quality compounder (25% EPS CAGR), with solid double-digit revenue growth, expanding operating margins, and free cash flow likely to inflect up materially in a 24-month timeframe,” highlighted Mahaney.
Amazon (AMZN) is viewed positively on Wall Street in general, with 64 Buy-equivalent ratings stacking up against just three Hold-equivalent ratings and no Sell-equivalent ratings. The Seeking Alpha Quant Rating is more cautious, with a low factor grade for valuation leading to a Hold rating.
Shares of Amazon (AMZN) are up 6.0% on a year-to-date basis to trail broad U.S. stock market averages.