Evercore ISI Names Amazon and Expedia as Top Long Picks for 2026
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Dec 30 2025
0mins
Should l Buy AMZN?
Source: CNBC
- Optimistic Outlook for Amazon: Evercore ISI has named Amazon as its top large-cap pick for 2026, with analysts noting a positive shift in the AI narrative for Amazon Web Services and projecting significant free cash flow growth over the next two years, despite the stock's nearly 6% rise this year, lagging behind the Nasdaq's 21% gain.
- Valuation Potential for Expedia: Analysts highlight Expedia's lower earnings multiple compared to competitors, suggesting that its turnaround under new management is not fully reflected in its valuation; even though the stock surged over 54% in 2025, the average price target indicates a potential decline of more than 5%.
- Long-Term Opportunity in Zillow: Evercore ISI favors Zillow as a long-term investment in the SMID space, as the stock's approximately 25% pullback since September positions it well for recovery, with analysts expecting a rebound of over 25% after a more than 5% drop in 2025.
- Market Expectation Analysis: According to LSEG, analysts maintain buy ratings for both Amazon and Zillow, reflecting a growing optimism in the market regarding the future performance of these tech stocks, indicating a gradual recovery of investor confidence.
Trade with 70% Backtested Accuracy
Stop guessing "Should I Buy AMZN?" and start using high-conviction signals backed by rigorous historical data.
Sign up today to access powerful investing tools and make smarter, data-driven decisions.
Analyst Views on AMZN
Wall Street analysts forecast AMZN stock price to rise
44 Analyst Rating
41 Buy
3 Hold
0 Sell
Strong Buy
Current: 204.790
Low
175.00
Averages
280.01
High
325.00
Current: 204.790
Low
175.00
Averages
280.01
High
325.00
About AMZN
Amazon.com, Inc. provides a range of products and services to customers. The products offered through its stores include merchandise and content it has purchased for resale and products offered by third-party sellers. The Company’s segments include North America, International and Amazon Web Services (AWS). It serves consumers through its online and physical stores and focuses on selection, price, and convenience. Customers access its offerings through its websites, mobile apps, Alexa, devices, streaming, and physically visiting its stores. It also manufactures and sells electronic devices, including Kindle, Fire tablet, Fire TV, Echo, Ring, Blink, and eero, and develops and produces media content. It serves developers and enterprises of all sizes, including start-ups, government agencies, and academic institutions, through AWS, which offers a set of on-demand technology services, including compute, storage, database, analytics, and machine learning, and other services.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
Anthropic Expands with New Office in India
- Market Expansion: Anthropic has opened a new office in Bengaluru, India, marking its second location in the Asia-Pacific region, highlighting India's significance as its second-largest market and expected to further drive Claude's market penetration.
- Leadership Change: The company appointed Irina Ghose as managing director for India, aiming to strengthen local market management and operational capabilities, thereby enhancing collaboration efficiency with local firms like Infosys and driving business growth.
- Funding Boost: Anthropic announced a $30 billion funding round this month, boosting its valuation to $380 billion, reflecting investor confidence in its leadership in the enterprise AI sector and further solidifying its market position.
- Technology Assessment: Amodei mentioned at the AI Impact Summit that Anthropic is evaluating Claude's performance across India's regional languages and local use cases, emphasizing the rapid advancement of AI technology and its potential societal impacts, despite facing friction with the U.S. Department of Defense.
See More
Amazon's Core Fundamentals Strengthen Amid Stock Reset
- Technical Pullback: Amazon's stock has stabilized near the long-term support zone of $195 to $200 after a sharp technical reset, indicating that the recent market sentiment fatigue does not reflect a deterioration in its core fundamentals, presenting a buying opportunity for long-term investors.
- Oversold Conditions: The Relative Strength Index has fallen into oversold territory, historically associated with intermediate-term rebounds, and combined with significant deviations from key moving averages, this increases the likelihood of a technical rebound toward the $220 to $230 range.
- Profitability Metrics: Amazon's forward P/E ratio stands at approximately 25x, with expected EPS growth of 25% and net margins of 10.8%, all surpassing industry averages, highlighting its robust profitability in the AI infrastructure sector.
- Strategic Investment Opportunity: By selling the March 20, 2026 $200 put option, investors can potentially acquire Amazon shares at a net price of $192.97 if the stock closes below $200, offering a 3.64% discount and a maximum reward of $703 per contract, showcasing a risk-managed investment strategy.
See More
Amazon Surpasses Walmart to Top Fortune 500 for First Time in 13 Years
- Fortune 500 Ranking: Amazon has overtaken Walmart to secure the top position in the Fortune 500 list for the first time, with a reported revenue of $716.9 billion, indicating strong performance in the retail market.
- E-commerce and Cloud Computing Synergy: Amazon's AWS division reported $45.6 billion in operating income in 2025, contributing over half of the company's operating profit despite accounting for less than 20% of total revenue, thus funding new product development.
- Walmart's Transformation Strategy: In the latest quarter, Walmart's U.S. e-commerce sales grew by 27% year-on-year, with global online sales up 24%, and its partnership with OpenAI to enhance AI shopping experiences demonstrates its commitment to adapting to market changes.
- Stock Performance Comparison: Year-to-date, Walmart's stock has climbed 10.74%, while Amazon's stock has declined by 9.55%, reflecting market reactions to the differing strategies of the two companies, with Walmart achieving a historic $1 trillion valuation in February.
See More
Nvidia's Stock Price Outlook for 2026
- Surge in AI Spending: In 2026, major companies like Amazon, Alphabet, and Meta are projected to spend around $500 billion on artificial intelligence, which will directly boost demand for Nvidia's GPUs and solidify its market leadership.
- Recovery in China: After facing export restrictions, Nvidia's sales to China have been approved again, and although an export tax will apply, this market's recovery is expected to significantly enhance the company's revenue and profitability in FY 2027.
- Analyst Optimism: Wall Street analysts forecast Nvidia's growth rate to reach 65% in FY 2027, with earnings per share (EPS) expected to rise from $4.69 to $7.74, providing strong support for the stock price.
- Significant Price Potential: Based on a conservative P/E ratio of 40, Nvidia's stock price could reach $309.60, representing a substantial increase from the current price of $185, and if the company exceeds earnings expectations, the stock could rise even higher, indicating strong investment appeal.
See More
Costco Shares Near $1,000: Caution Advised for Investors
- Strong Sales Growth: Costco's net sales for the four-week retail month of January 2026 rose 9.3% year-over-year to $21.3 billion, demonstrating the company's robust performance in the retail market and bolstering investor confidence in its future growth prospects.
- Rapid Membership Fee Growth: In the first quarter of fiscal 2025, Costco's membership fees increased by 14% year-over-year, indicating the company's success in maintaining customer loyalty and diversifying revenue streams, which further solidifies its market position.
- Outstanding E-commerce Performance: Costco's digital sales surged by 34.4% in January, and even after adjusting for gasoline and foreign exchange, the growth remained at 33.1%, showcasing the company's strong competitiveness in the e-commerce sector and alleviating concerns about potential threats from Amazon.
- Valuation Risks Emerge: Despite Costco's solid growth performance, its current P/E ratio of approximately 53 suggests that investors should approach with caution, as any slowdown in sales growth could negatively impact the stock price; thus, a more secure entry point around $830 is recommended.
See More
Costco's Sales Growth Remains Steady
- Sales Growth Trends: Costco's net sales for the four-week retail month of January 2026 rose 9.3% year-over-year to $21.3 billion, demonstrating the company's strong performance in the retail market and further solidifying its market position.
- Digital Sales Performance: The company's digitally enabled sales surged 34.4% in January, with an adjusted growth rate of 33.1% when excluding gasoline and foreign exchange impacts, indicating rapid expansion in e-commerce and enhancing its competitive resilience.
- Membership Fee Growth: In the fiscal first quarter of 2025, Costco's net sales increased 8.2% year-over-year to $66.0 billion, while membership fees grew even faster at a rate of 14%, reflecting the company's stable revenue sources and customer loyalty.
- Valuation Risks: With a current P/E ratio exceeding 53, despite Costco's strong performance, investors should exercise caution considering potential risks of sales growth slowdown, suggesting an entry point around $830 may be more prudent than at $1,000.
See More
Anthropic Expands with New Office in India
- Market Expansion: Anthropic has opened a new office in Bengaluru, India, marking its second location in the Asia-Pacific region, highlighting India's significance as its second-largest market and expected to further drive Claude's market penetration.
- Leadership Change: The company appointed Irina Ghose as managing director for India, aiming to strengthen local market management and operational capabilities, thereby enhancing collaboration efficiency with local firms like Infosys and driving business growth.
- Funding Boost: Anthropic announced a $30 billion funding round this month, boosting its valuation to $380 billion, reflecting investor confidence in its leadership in the enterprise AI sector and further solidifying its market position.
- Technology Assessment: Amodei mentioned at the AI Impact Summit that Anthropic is evaluating Claude's performance across India's regional languages and local use cases, emphasizing the rapid advancement of AI technology and its potential societal impacts, despite facing friction with the U.S. Department of Defense.
See More
Amazon's Core Fundamentals Strengthen Amid Stock Reset
- Technical Pullback: Amazon's stock has stabilized near the long-term support zone of $195 to $200 after a sharp technical reset, indicating that the recent market sentiment fatigue does not reflect a deterioration in its core fundamentals, presenting a buying opportunity for long-term investors.
- Oversold Conditions: The Relative Strength Index has fallen into oversold territory, historically associated with intermediate-term rebounds, and combined with significant deviations from key moving averages, this increases the likelihood of a technical rebound toward the $220 to $230 range.
- Profitability Metrics: Amazon's forward P/E ratio stands at approximately 25x, with expected EPS growth of 25% and net margins of 10.8%, all surpassing industry averages, highlighting its robust profitability in the AI infrastructure sector.
- Strategic Investment Opportunity: By selling the March 20, 2026 $200 put option, investors can potentially acquire Amazon shares at a net price of $192.97 if the stock closes below $200, offering a 3.64% discount and a maximum reward of $703 per contract, showcasing a risk-managed investment strategy.
See More
Amazon Surpasses Walmart to Top Fortune 500 for First Time in 13 Years
- Fortune 500 Ranking: Amazon has overtaken Walmart to secure the top position in the Fortune 500 list for the first time, with a reported revenue of $716.9 billion, indicating strong performance in the retail market.
- E-commerce and Cloud Computing Synergy: Amazon's AWS division reported $45.6 billion in operating income in 2025, contributing over half of the company's operating profit despite accounting for less than 20% of total revenue, thus funding new product development.
- Walmart's Transformation Strategy: In the latest quarter, Walmart's U.S. e-commerce sales grew by 27% year-on-year, with global online sales up 24%, and its partnership with OpenAI to enhance AI shopping experiences demonstrates its commitment to adapting to market changes.
- Stock Performance Comparison: Year-to-date, Walmart's stock has climbed 10.74%, while Amazon's stock has declined by 9.55%, reflecting market reactions to the differing strategies of the two companies, with Walmart achieving a historic $1 trillion valuation in February.
See More
Nvidia's Stock Price Outlook for 2026
- Surge in AI Spending: In 2026, major companies like Amazon, Alphabet, and Meta are projected to spend around $500 billion on artificial intelligence, which will directly boost demand for Nvidia's GPUs and solidify its market leadership.
- Recovery in China: After facing export restrictions, Nvidia's sales to China have been approved again, and although an export tax will apply, this market's recovery is expected to significantly enhance the company's revenue and profitability in FY 2027.
- Analyst Optimism: Wall Street analysts forecast Nvidia's growth rate to reach 65% in FY 2027, with earnings per share (EPS) expected to rise from $4.69 to $7.74, providing strong support for the stock price.
- Significant Price Potential: Based on a conservative P/E ratio of 40, Nvidia's stock price could reach $309.60, representing a substantial increase from the current price of $185, and if the company exceeds earnings expectations, the stock could rise even higher, indicating strong investment appeal.
See More
Costco Shares Near $1,000: Caution Advised for Investors
- Strong Sales Growth: Costco's net sales for the four-week retail month of January 2026 rose 9.3% year-over-year to $21.3 billion, demonstrating the company's robust performance in the retail market and bolstering investor confidence in its future growth prospects.
- Rapid Membership Fee Growth: In the first quarter of fiscal 2025, Costco's membership fees increased by 14% year-over-year, indicating the company's success in maintaining customer loyalty and diversifying revenue streams, which further solidifies its market position.
- Outstanding E-commerce Performance: Costco's digital sales surged by 34.4% in January, and even after adjusting for gasoline and foreign exchange, the growth remained at 33.1%, showcasing the company's strong competitiveness in the e-commerce sector and alleviating concerns about potential threats from Amazon.
- Valuation Risks Emerge: Despite Costco's solid growth performance, its current P/E ratio of approximately 53 suggests that investors should approach with caution, as any slowdown in sales growth could negatively impact the stock price; thus, a more secure entry point around $830 is recommended.
See More
Costco's Sales Growth Remains Steady
- Sales Growth Trends: Costco's net sales for the four-week retail month of January 2026 rose 9.3% year-over-year to $21.3 billion, demonstrating the company's strong performance in the retail market and further solidifying its market position.
- Digital Sales Performance: The company's digitally enabled sales surged 34.4% in January, with an adjusted growth rate of 33.1% when excluding gasoline and foreign exchange impacts, indicating rapid expansion in e-commerce and enhancing its competitive resilience.
- Membership Fee Growth: In the fiscal first quarter of 2025, Costco's net sales increased 8.2% year-over-year to $66.0 billion, while membership fees grew even faster at a rate of 14%, reflecting the company's stable revenue sources and customer loyalty.
- Valuation Risks: With a current P/E ratio exceeding 53, despite Costco's strong performance, investors should exercise caution considering potential risks of sales growth slowdown, suggesting an entry point around $830 may be more prudent than at $1,000.
See More
