Mark Mahaney – a senior Evercore ISI analyst – has named his top internet stock picks for 2026, highlighting opportunities across both large-cap and small/mid-cap names.
According to him, Amazon, Expedia, and Zillow are particularly strongly positioned for continued momentum in the coming year.
Mahaney’s thesis rests on improving fundamentals, attractive valuation, and narratives he believes aren’t yet fully appreciated by the market.
Let’s take a closer look at what AMZN, EXPE, and Z shares have in store for investors in 2026.
Amazon stock: AI tailwinds and cash flow upside
Mahaney’s top large-cap choice is Amazon, where he sees a powerful combination of improving fundamentals and a shifting narrative around artificial intelligence.
“The AI narrative has flipped positive for Amazon Web Services,” he explained, noting that AWS is positioned to benefit from rising enterprise adoption of generative AI.
Beyond cloud, Mahaney expects Amazon’s free cash flow to inflect higher over the next two years, providing a catalyst for shareholder returns.
Mahaney’s “buy” rating on AMZN stock is tied to a price target of $335, indicating potential upside of a whopping 45% from current levels.
According to him, the titan’s high-margin advertising business will continue to drive growth in the new year (2026).
Expedia stock: undervalued turnaround story
Mark Mahaney has immense confidence in the new management’s ability to turn around Expedia in 2026.
The company’s leadership is committed to streamlining the EXPE platform and improving the overall customer experience – changes that he believes aren’t fully reflected in the current share price.
Additionally, at a price-to-sales (P/S) multiple of only 2.57, the travel booking giant is trading at a steep discount to peers, despite showing signs of operational improvement, the Evercore ISI expert told clients in a recent research note.
Mahaney sees upside in EXPE stock to about $350 next year, suggesting investors willing to look beyond near-term skepticism could benefit from the company’s improving fundamentals in 2026.
Zillow stock: long-term opportunity after a pullback
In the small- and mid-cap names, Mahaney’s favourite internet stock heading into 2026 is Zillow.
Z shares have lost more than 20% in under four months, which the Evercore ISI analyst dubbed a rare opportunity for long-term investors to initiate or expand a position in them.
According to him, Zillow stock could recover next year as housing affordability challenges drive more consumers online for listings and rental options.
All in all, Mahaney sees the company’s digital platform as strongly positioned to capture demand once market conditions stabilize.
His “buy” rating on Zillow comes with a $95 price target, indicating potential upside of about 35% from here.
Like other names on his list, however, this Nasdaq-listed firm doesn’t currently pay a dividend to appear particularly attractive for income-focused investors.
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