Evercore ISI named Amazon (AMZN) its top large-cap Internet selection for 2026. Analysts cited significant momentum within the Amazon Web Services (AWS) division. AWS posted 20% year-over-year growth in the third quarter, a performance that outpaced Microsoft Azure growth for the first time since the third quarter of 2022.
The positive outlook is supported by a perceived shift in the AI narrative, which analysts view as favorable for AWS. Evercore identified several other potential catalysts for the coming year. These include advancements in the grocery business, the development of Trainium chips, Amazon Pharmacy, and the Amazon for Business segment.
Evercore described Amazon as a "high-quality compounder." The firm projects a 25% earnings per share compound annual growth rate (CAGR). Expectations also include double-digit revenue growth and expanding operating margins. Wall Street widely shares this positive view, with the stock holding 64 Buy-equivalent ratings.