Investing.com -- Bank of America has identified its top picks across the internet and e-commerce sector for the first half of 2026, highlighting companies positioned for growth through artificial intelligence exposure, market share gains, and operational improvements.
The selections span mega-cap technology leaders to mid-sized specialists, with analysts pointing to specific catalysts that could drive outperformance in the coming quarters.
- Amazon - Bank of America's top mega-cap pick for the first half of 2026, led by analyst Justin Post. The firm expects AWS revenue growth to accelerate in 2026, with potential upside to Street estimates of 21% growth. Amazon plans to add one gigawatt of power capacity in the fourth quarter, representing a potential 5% addition to total capacity, and aims to double capacity by 2027. The retail segment should sustain share gains through faster delivery speeds and growing grocery traction.
Bank of America projects GAAP operating income to grow 25% in 2026, above mega-cap peers, with margin expansion driven by headcount discipline, improved inbound efficiencies, advertising growth, and Kuiper capitalization expected in the first half of 2026.
In a significant strategic move, Amazon announced it will invest $50 billion in OpenAI as part of an expanded partnership to develop AI capabilities. The company also signed an agreement with Vodafone to use its satellite broadband network to expand mobile coverage in Europe and Africa. - Expedia - Selected as the top mid-cap pick by analyst Justin Post. The company reported third-quarter room nights growth of 11% year-over-year, a four percentage point acceleration versus the second quarter, outpacing Booking's 8% and Airbnb's 9% growth.
Bank of America sees an opportunity to close the EBITDA multiple gap to peers, citing easy first-half comparisons and World Cup-related travel as positive setup factors for 2026. The company is improving B2C performance while executing strong B2B growth and advertising revenues.
Expedia reported fourth-quarter results that showed bookings growth of 11% year-over-year, with its B2B revenue growth accelerating to 24%. Following the results, DA Davidson and Cantor Fitzgerald lowered their price targets on the company's stock, while Bernstein SocGen Group reiterated its Market Perform rating. - AppLovin - Named top AdTech pick by analyst Omar Dessouky. The firm sees attractive risk/reward as the company's eCommerce advertising platform drives a second growth curve alongside its mobile gaming ads franchise. Recent third-party datapoints point to rapid footprint expansion and an expanding merchant base.
AppLovin delivered strong fourth-quarter 2025 results, with revenue of $1.66 billion representing 66% year-over-year growth and exceeding consensus estimates. Scotiabank subsequently raised its price target on the company, while Piper Sandler lowered its target. - Roblox - Top gaming pick from analyst Omar Dessouky. Bank of America believes the company is evolving into a hit factory capable of delivering consistent viral experiences, with Grow a Garden representing proof of investments in discovery, creator economics, infrastructure, and AI.
Recent developments for Roblox include better-than-expected 2026 bookings guidance, which prompted an upgrade to Buy from Roth/MKM. The company also announced that its Chief People and Systems Officer plans to resign, effective March 6, 2026. - Wayfair - Selected as top SMID-cap eCommerce pick by analyst Mike McGovern. Year-over-year growth accelerated to 8% versus flat industry growth in the most recent quarter. Catalysts include seller adoption of the Castlegate logistics platform, Loyalty Program improvements, and margin benefits from increasing ad penetration.
Wayfair reported fourth-quarter results that beat expectations for revenue and EBITDA. However, several analyst firms, including Stifel and Truist Securities, lowered their price targets on the stock, citing concerns about the company's margin outlook.
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