Stock Markets March 2, 2026

Bank of America Identifies Internet and E-Commerce Leaders to Watch in H1 2026

BofA highlights Amazon, Expedia, AppLovin, Roblox and Wayfair as top sector picks based on AI exposure, market share trends and operational gains

By Marcus Reed AMZN EXPE APP RBLX W
Bank of America Identifies Internet and E-Commerce Leaders to Watch in H1 2026
AMZN EXPE APP RBLX W

Bank of America has released its selection of top internet and e-commerce equities for the first half of 2026, spanning mega-cap platforms to niche specialists. Analysts point to accelerating cloud revenue, AI partnerships, travel demand, adtech scale and logistics improvements as the main catalysts behind the calls.

Key Points

  • Bank of America named Amazon, Expedia, AppLovin, Roblox and Wayfair as its top internet and e-commerce picks for the first half of 2026, citing AI exposure, market-share gains and operational improvements.
  • Amazon is the top mega-cap pick with expected AWS acceleration and a 25 percent projected GAAP operating income increase in 2026; strategic moves include a $50 billion investment in OpenAI and a Vodafone satellite broadband agreement.
  • Expedia, AppLovin, Roblox and Wayfair were selected for mid-cap, AdTech, gaming and SMID-cap e-commerce exposure respectively, with catalysts ranging from travel demand and B2B growth to ad platform expansion, creator-driven gaming hits and logistics-driven margin improvements.

Bank of America has named its preferred stocks in the internet and e-commerce complex for the first half of 2026, singling out companies the firm believes are positioned to outperform thanks to exposure to artificial intelligence, market-share momentum and efficiency gains.

The list ranges from mega-cap technology platforms to mid-sized and smaller-cap firms where analysts see specific operational catalysts. Below are the firms highlighted names and the factors cited by Bank of Americas analysts that underpin each selection.


Amazon

Bank of America picked Amazon as its top mega-cap choice for the first half of 2026, with analyst Justin Post leading the call. The firm expects Amazon Web Services revenue growth to accelerate in 2026 and notes potential upside to consensus Street estimates pegged at 21 percent growth. On the infrastructure side, Amazon plans to add one gigawatt of power capacity in the fourth quarter, which the bank estimates could represent roughly a 5 percent increase to total capacity, and the company has an objective to double that capacity by 2027.

Within retail, Bank of America expects the business to sustain share gains supported by faster delivery speeds and growing traction in grocery. The firm models a 25 percent increase in GAAP operating income for Amazon in 2026, above peer mega-cap growth, and points to margin expansion driven by headcount discipline, improved inbound efficiencies, growth in advertising and Kuiper capitalization anticipated in the first half of 2026.

Strategic developments noted by Bank of America include Amazons announced $50 billion investment in OpenAI intended to expand joint AI capabilities, and a commercial agreement with Vodafone to leverage Vodafones satellite broadband network to broaden mobile coverage across Europe and Africa.


Expedia

As its top mid-cap pick, Bank of Americas Justin Post highlights Expedia on the basis of accelerating travel demand and improving revenue mix. The company reported third-quarter room nights growth of 11 percent year-over-year, a four percentage point acceleration from the second quarter, and that pace outperformed Bookings 8 percent and Airbnbs 9 percent growth metrics cited by the bank.

Bank of America sees a path for Expedia to close the EBITDA multiple gap to peers, pointing to relatively easy first-half comparison periods and an upside from World Cup-related travel activity as constructive factors for 2026. The firm notes that Expedia is showing improvement in B2C performance while maintaining strong growth in B2B and advertising revenues.

On recent results, Expedia reported fourth-quarter bookings growth of 11 percent year-over-year and B2B revenue growth accelerating to 24 percent. Following those results, the article notes that DA Davidson and Cantor Fitzgerald trimmed price targets on Expedia stock while Bernstein SocGen Group maintained a Market Perform rating.


AppLovin

Bank of America named AppLovin its top AdTech pick with analyst Omar Dessouky emphasizing an attractive risk-reward profile. The bank points to AppLovins e-commerce advertising platform as establishing a second growth vector that would complement its mobile gaming advertising franchise. Third-party datapoints referenced by the firm indicate rapid footprint expansion and an enlarging merchant base for the platform.

AppLovin reported robust fourth-quarter 2025 results, with revenue of $1.66 billion representing 66 percent year-over-year growth and exceeding consensus estimates, according to the firms summary. In the aftermath of those results, Scotiabank raised its price target for the company while Piper Sandler reduced its target.


Roblox

As its top gaming pick, Bank of Americas Omar Dessouky argues that Roblox is evolving into what the firm describes as a hit factory capable of producing recurring viral experiences. The bank cites the title Grow a Garden as evidence of prior investments in discovery, creator economics, infrastructure and AI.

Bank of America also highlights better-than-expected 2026 bookings guidance from Roblox that prompted an upgrade to Buy from Roth/MKM. The company has additionally disclosed that its Chief People and Systems Officer intends to resign, effective March 6, 2026.


Wayfair

For SMID-cap e-commerce exposure, Bank of America selected Wayfair, with analyst Mike McGovern noting year-over-year growth accelerating to 8 percent in the most recent quarter versus flat industry growth. The bank identifies several operational catalysts, including increased seller adoption of the Castlegate logistics platform, improvements to the companys Loyalty Program, and margin tailwinds from rising ad penetration.

Wayfairs fourth-quarter results beat expectations for revenue and EBITDA, the firm reports. Despite the earnings beat, the article notes that a number of analyst firms, including Stifel and Truist Securities, lowered price targets on the stock and cited concerns about the companys margin outlook.


Bank of Americas selections cover distinct corners of the internet and e-commerce ecosystem - cloud infrastructure and AI partnerships, online travel demand, adtech platform scale, gaming platform monetization and logistics-driven retail improvement - with analysts pointing to specific revenue and margin drivers they believe could support outperformance in the first half of 2026.

Risks

  • Analyst actions and price target changes highlight investor uncertainty - for example, DA Davidson and Cantor Fitzgerald lowered Expedia price targets after fourth-quarter results, and multiple firms trimmed Wayfair targets due to margin concerns. This impacts travel and retail sectors.
  • Company-specific execution risks are noted, such as Wayfairs margin outlook concerns and Robloxs forthcoming executive departure, which could affect operational continuity in retail and gaming sectors.
  • Divergent analyst reactions to quarterly results and target revisions at AppLovin and Expedia indicate market sensitivity to earnings and guidance, presenting uncertainty for adtech and travel-related equities.

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