Wolfe Research on top picks
Wolfe Research released an updated internet sector note identifying Amazon (AMZN), DoorDash (DASH), Meta Platforms (META) and Chewy (CHWY) as its top picks over a 12-month horizon. The firm framed these selections against a market backdrop in which first-quarter earnings have wrapped up and investor attention is turning to several geopolitical, macro and technology-led variables.
Broader market considerations
According to Wolfe, market focus is shifting toward geopolitical tensions involving the U.S. and Iran, developments in artificial intelligence, prevailing valuation levels, interest rate uncertainty and U.S.-China trade relations. The firm said it is looking for internet companies where observable catalysts and durable fundamentals create opportunities for upward estimate revisions or valuation realignment.
Investment criteria the firm highlighted
Wolfe spelled out the attributes it believes can produce attractive outcomes in select internet stocks: potential for upward estimate revisions, clear product catalysts, macro resilience, possibilities for revenue acceleration or margin expansion, and instances of valuation dislocation.
Amazon
For Amazon, Wolfe expects upside to both revenue and EBITDA estimates, with AWS acceleration as the principal driver. The firm projects AWS revenue growth in the second quarter in the low-to-mid 30% range, compared with the consensus estimate of 31%. Wolfe cited contributions from Anthropic and OpenAI, capacity expansion and organic mid-teens percentage growth as supporting that outlook. Beyond AWS, Wolfe anticipates Amazon maintaining retail market share, and sees potential operating income upside stemming from advertising revenue growth, regionalization benefits, a shift toward a larger third-party seller mix and ongoing automation over time.
Meta Platforms
Wolfe called attention to a notable valuation gap between Meta and Alphabet, noting Meta's 2027 price-to-earnings ratio of 17.7 times versus Alphabet's 27.4 times. The firm identified several near-term catalysts for Meta, including the launch of a revised model and a new product, the potential to integrate Must Spark into core offerings, improvements to recommendation and ranking models, and monetization efforts for Threads and WhatsApp.
DoorDash
Wolfe described DoorDash's recent share pullback after first-quarter results as potentially overdone. The note acknowledged that fiscal 2026 could see pressure from investments in technology, software and autonomous initiatives, but nonetheless saw upside to Street fiscal 2027 EBITDA estimates due to healthy revenue growth and continuing unit economic improvements in international operations as well as grocery and retail segments.
Chewy
Chewy was also named among Wolfe's 12-month top picks; the research note listed it alongside the other highlighted internet names, without providing additional company-specific detail in the published summary.
This report from Wolfe Research presents the firm’s selections and the rationale behind them while situating the recommendations amid geopolitical, macroeconomic and technology-driven considerations investors are monitoring.