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Investing.com -- Internet stocks continue to attract investor attention as artificial intelligence and cloud computing reshape the digital landscape. Wolfe Research has identified several top performers in this sector, with Amazon leading the pack, followed by Alphabet, DoorDash, and Chewy.
Amazon (NASDAQ:AMZN)
Wolfe Research sees significant upside potential for Amazon, driven primarily by AWS acceleration through Project Rainier and partnerships with AI leaders like OpenAI and Anthropic.
The company is expected to maintain its retail market share while potentially improving operating income through automation and advertising revenue growth. Analysts believe these factors could lead to both multiple re-rating and upward estimate revisions. The upcoming re:Invent conference could serve as a catalyst with potential new announcements adding option value.
Recently, Amazon Web Services announced a partnership with HUMAIN to deploy up to 150,000 AI accelerators in a new data center in Saudi Arabia. The company also faces a market investigation from the European Commission into its cloud computing services under the Digital Markets Act.
Alphabet (NASDAQ:GOOGL)
Google’s parent company ranks second with several near-term catalysts on the horizon. These include the upcoming Gemini 3 launch, Nano Banana 2 launch, final hearing and ruling in the Adtech case, and a potential partnership with Apple.
Wolfe Research notes that new AI-enabled ad products should help maintain stable Search revenue, while YouTube’s topline growth and Cloud revenue could accelerate. This is supported by newly signed deals and large-scale TPU access, potentially leading to healthy EPS growth despite elevated spending.
Alphabet announced a $2 billion investment for a data center in Turkey and released its new Gemini 3 AI model, which received a positive assessment from DA Davidson. Additionally, KeyBanc reiterated its Overweight rating on the company, citing its advantages in artificial intelligence.
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DoorDash (NYSE:DASH)
DoorDash takes the third spot with Wolfe Research projecting upside to consensus FY’26 EBITDA estimates. The company is expected to maintain healthy topline growth and ongoing EBITDA growth through FY’27. Analysts consider the growth-adjusted EBITDA multiple reasonable, presenting an attractive risk/reward profile for investors.
DoorDash announced a partnership with TKO Group to become the official on-demand delivery partner for WWE and UFC. The company also received an upgrade from Jefferies to a Buy rating, while Needham maintained a Buy rating but lowered its price target.
Chewy (NYSE:CHWY)
Despite underperforming the S&P 500 by 8% since its last earnings call, Chewy rounds out the list with Wolfe Research maintaining its positive outlook. Analysts expect macro resiliency and upside to revenue and EBITDA estimates in FY’26 from several product catalysts.
These include Chewy+, Health & Vet Clinics initiatives, and ongoing automation and operational efficiency improvements. The target multiple remains roughly in line with Chewy’s three-year historical median.
Chewy announced the acquisition of SmartEquine from Covetrus to expand its presence in the equine health market. The company also raised the annual fee for its Chewy+ membership program, a move noted by analysts at Mizuho and Piper Sandler who both reiterated positive ratings.
These rankings reflect Wolfe Research’s assessment of the most promising internet stocks based on growth potential, upcoming catalysts, and valuation metrics in the current market environment.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.