Investing.com - Wolfe Research released its latest internet sector report on Wednesday, highlighting Amazon (NASDAQ: AMZN), DoorDash (NYSE: DASH), Meta Platforms (NASDAQ: META), and Chewy (NYSE: CHWY) as top picks over a 12-month period.

The firm noted that first-quarter earnings concluded this week, with investor attention shifting to geopolitical tensions involving the U.S. and Iran, artificial intelligence developments, valuations, interest rate uncertainties, and U.S.-China trade relations.

Wolfe Research said it sees opportunities in select internet stocks where there is potential for upward estimate revisions, clear product catalysts, macro resilience, potential for revenue acceleration or margin expansion, and valuation dislocations.

For Amazon, the firm expects upside to revenue and EBITDA estimates driven by AWS acceleration. Wolfe projects AWS revenue growth in the second quarter at low-to-mid 30% compared to the consensus estimate of 31%, citing contributions from Anthropic, OpenAI, capacity expansion, and organic mid-teens percentage growth. The firm also anticipates Amazon will maintain its retail market share with potential operating income upside from advertising revenue growth, regionalization benefits, a shift toward third-party sellers, and automation over time.

Regarding Meta, Wolfe highlighted the valuation gap between Meta and Alphabet, with Meta's 2027 price-to-earnings ratio at 17.7 times compared to Alphabet's 27.4 times. The firm identified near-term catalysts including the launch of a revised model and new product, potential integration of Must Spark with core products, improvements in Meta's recommendation and ranking models, and monetization of Threads and WhatsApp.

For DoorDash, Wolfe said the recent share pullback following first-quarter earnings appears overdone. While fiscal 2026 may face pressure from technology, software, and autonomous investments, the firm sees upside to Street estimates for fiscal 2027 EBITDA based on healthy revenue growth and ongoing unit economic improvements for international and grocery and retail businesses.