Senior Evercore ISI analyst Mark Mahaney identifies Amazon as one of his favorite large-cap internet stocks for 2026, citing the company’s diversified revenue streams and market leadership in both e-commerce and cloud computing. Mahaney highlights Amazon’s ability to sustain double-digit growth in AWS and maintain healthy unit economics in retail logistics, positioning it to capture continued share gains as consumer spending and enterprise IT investment remain robust.

Amazon Web Services (AWS) now boasts an annualized revenue run-rate of approximately $132 billion, contributing more than 50% of the company’s operating income while representing under 20% of net sales. This segment’s high margins and strong demand for generative AI infrastructure underpin Amazon’s overall profitability, with AWS revenue growth expected to accelerate further as enterprises integrate cloud-native AI services into their operations.

After posting new all-time highs following its late-October earnings report, Amazon shares retraced by around 10% and now trade roughly flat year-over-year, lagging the broader market. Analysts at Evercore ISI view this underperformance as an entry point, forecasting that resilient consumer demand in e-commerce and continued AWS expansion will drive total shareholder returns in 2026. Key technical resistance levels near year-end will serve as important indicators of renewed upside momentum.