Wedbush Securities said 2026 is shaping up to be a decisive year for consumer internet companies, marked by a widening gap between winners and losers as investors assess artificial intelligence monetization, autonomous vehicle disruption, and sustained investment cycles across the sector.
The firm wrote in a note that 2025 delivered solid performance for the group, with the analysts’ coverage universe posting an average return of about 23%, compared with roughly 19% for the Nasdaq Index.
Wedbush believes the positive momentum sets the stage for sharper differentiation in 2026 as new technologies and spending priorities come under closer scrutiny.
“We think 2026 will be a year of winners and losers as investors debate a range of topics spanning disruption from AVs, AI monetization across consumer products, ongoing investment cycles, and rising adoption of agentic AI,” the analysts wrote.
Against that backdrop, Wedbush named Amazon.com Inc (NASDAQ:AMZN), Meta Platforms Inc (NASDAQ:META, XETRA:FB2A, SIX:FB), MercadoLibre, and DoorDash Inc (NYSE:DASH) as its top picks for 2026, while downgrading Lyft Inc (NASDAQ:LYFT) to ‘Underperform.’
Amazon seen as leading AI beneficiary
Wedbush said Amazon remains its top e-commerce pick heading into 2026, citing renewed confidence in the company’s artificial intelligence strategy and improving fundamentals across both cloud and retail operations.
“Following a reacceleration in AWS growth and positive commentary last quarter, we believe investors have regained comfort in management’s ability to retain a leading position in the AI space,” the analysts wrote.
Wedbush expects 2026 to be a strong year for Amazon Web Services, which it views as a key catalyst for the stock as the year progresses.
The firm also pointed to continued strength in Amazon’s core retail business, noting that consumer-facing AI tools are already contributing to incremental sales.
Wedbush said it expects margin expansion in 2026, supported by fulfillment efficiencies and a greater mix of higher-margin advertising and AWS revenue.
MercadoLibre and Meta highlighted for different growth drivers
Wedbush said MercadoLibre remains a top pick as the company moves through its current investment cycle, with attention focused on demand trends and competition in core markets, expense growth following logistics and sales investments, and the company’s ability to scale its lending operations while managing risk.
For Meta Platforms, Wedbush wrote that the company is its top advertising pick into 2026, supported by resilient digital ad trends and continued adoption of its Advantage+ tools.
The analysts noted that newer monetization channels have shown encouraging progress despite investor caution around elevated AI and infrastructure spending.
“While we anticipate margins will contract in 2026, we are watching closely for additional areas of cost discipline that could drive upside,” the analysts wrote.
DoorDash favored, Lyft downgraded on AV concerns
Wedbush said DoorDash is its top mobility pick for 2026, citing the company’s leading position in the US food delivery market and execution across newer initiatives.
Although higher spending is expected to pressure margins in the near term, the firm said those investments are expanding DoorDash’s total addressable market globally and supporting longer-term growth.
In contrast, Wedbush downgraded Lyft to ‘Underperform,’ citing exposure to autonomous vehicle disruption.
The firm believes that Lyft’s concentration in the US ridesharing market and lack of diversification leave it more vulnerable as AV adoption advances.
“In our view, Lyft is most at risk to the impact of AV disruption given the company’s exposure to the US ridesharing market and undiversified offering mix,” the analysts wrote.
Wedbush added that it believes the market is underestimating the potential negative long-term impact of autonomous vehicles on Lyft’s valuation. The firm said it remains cautious on Uber but maintained a ‘Neutral’ rating.