Wedbush Securities Forecasts Pivotal Year Ahead for Consumer Internet Firms in 2026
Wedbush Securities has articulated that the year 2026 is poised to be a critical juncture for consumer internet enterprises, characterized by an expanding disparity between triumphs and setbacks as investors evaluate the monetization of artificial intelligence, the disruptive potential of autonomous vehicles, and enduring investment cycles across the industry.
In a recent communiqué, the firm noted that 2025 yielded robust performance for this sector, with the analysts’ coverage universe recording an average return of approximately 23%, significantly surpassing the Nasdaq Index’s return of around 19%.
According to Wedbush, this positive trajectory establishes a foundation for heightened differentiation in 2026, as emergent technologies and shifting spending priorities come under intensified scrutiny.
“We anticipate that 2026 will delineate a landscape of both victors and vanquished as investors deliberate on diverse subjects, ranging from the disruption caused by autonomous vehicles to AI monetization across consumer offerings, persistent investment cycles, and the increasing embrace of agentic AI,” the analysts remarked.
Amazon Positioned as Foremost Beneficiary of AI
The firm identified Amazon as its foremost e-commerce selection leading into 2026, underscoring rejuvenated confidence in the company’s artificial intelligence strategy alongside improving fundamentals in both cloud and retail sectors.
“Following a resurgence in AWS growth and favorable commentary last quarter, we believe investors have regained trust in management’s capability to maintain a leading stance in the AI domain,” the analysts stated.
Wedbush envisions 2026 as a pivotal year for Amazon Web Services, which it regards as a crucial catalyst for the company’s stock performance as the year unfolds.
The firm also highlighted ongoing vigor in Amazon’s core retail business, pointing out that consumer-oriented AI tools are already contributing to incremental revenue.
They predict margin enhancement in 2026, bolstered by efficiencies in fulfillment and an increased proportion of high-margin advertising and AWS revenue.
MercadoLibre and Meta Platforms: Divergent Growth Engines
MercadoLibre has been reaffirmed as a top choice as the firm navigates its current investment cycle, with scrutiny directed toward demand trends, competition in core markets, expense expansion from logistics and sales investments, and the company’s capacity to scale its lending functions while managing associated risks.
For Meta Platforms, Wedbush anointed the company as its premier advertising selection for 2026, backed by resilient digital advertising trends and the continued uptake of its Advantage+ tools.
They observed that nascent monetization channels have demonstrated promising advancement, notwithstanding investor trepidation surrounding heightened AI and infrastructure expenditures.
“While we expect margins to contract in 2026, we remain vigilant for further avenues of cost discipline that could yield positive surprises,” the analysts noted.
DoorDash Preferred, Lyft Downgraded Amid AV Disruptions
Wedbush designated DoorDash as its leading mobility selection for 2026, citing the company’s dominant presence in the U.S. food delivery sector and effective execution across innovative ventures.
Despite anticipated short-term margin pressures from increased spending, the firm contended that these investments are broadening DoorDash’s total addressable market globally and fostering long-term expansion.
Conversely, Wedbush downgraded Lyft to ‘Underperform,’ citing its susceptibility to disruptions caused by autonomous vehicles.
The firm posits that Lyft’s concentration in the U.S. ridesharing market, coupled with its lack of diversification, renders it particularly vulnerable as the adoption of autonomous vehicles accelerates.
“In our assessment, Lyft faces the most considerable risk from AV disruption, given its exposure to the U.S. ridesharing market and undiversified service mix,” the analysts expressed.
Additionally, Wedbush believes the market is underappreciating the potentially adverse long-term implications of autonomous vehicles on Lyft’s valuation. While remaining cautious on Uber, the firm retained a ‘Neutral’ rating.
Source link: Proactiveinvestors.com.
