Evercore ISI has announced its favorite extended internet plays for the new year. Mark Mahaney, head of the firm’s internet research team, shared his top stocks for 2026 in both large-cap and small- and mid-cap stocks. His favorite large-cap and SMID stocks are: Mahaney listed Amazon as his top long large-cap stock this year. He said the AI story is “turning around” for Amazon Web Services and that free cash flow will increase further over the next two years. Amazon’s stock has risen nearly 6% this year, lagging the more than 21% rise in the tech-heavy Nasdaq Composite Index. However, Wall Street expects a big rally ahead. The average analyst surveyed by LSEG has a buy rating and price target, implying an upside of over 25%. AMZN YTD Mountain Amazon Expedia was Mahaney’s next choice in 2025, but the analyst noted that the travel booking stock’s multiple was lower than its competitors and that the company’s turnaround under new management was not properly factored into the valuation. Unlike Amazon, Expedia outperformed in 2025, surging more than 54% year-to-date. However, while the average analyst surveyed by LSEG rates it a Buy, typical price targets suggest the stock could fall by more than 5%. When it comes to SMID, Mahaney said Zillow is his favorite. Mahaney said Zillow’s decline of about 25% since September puts the stock in a good position for the long term. The recent plunge has seen real estate listing platforms drop by more than 5% in 2025. However, the average analyst rates it a buy and expects the stock to recover more than 25%, according to LSEG.
