Evercore ISI analyst Mark Mahaney isn’t exactly a new kid on the block. He’s been covering the "Interwebs" for roughly 25 years, meaning he’s seen everything from the Pets.com collapse to the Meta pivot. Most people looking for Mark Mahaney stock picks are trying to find that one "sure thing," but if you've ever read his book Nothing But Net, you know he’s the first to tell you there’s no such thing as a bloodless bull market.
Right now, as we head deeper into 2026, the landscape looks... weird. AI is no longer a "maybe" technology; it’s a "show me the money" technology. Mahaney’s latest research notes suggest he’s looking at a specific group of companies he calls "DHQs"—Dislocated High-Quality stocks. Basically, these are winners that have been temporarily punched in the mouth by the market.
The Big Call: Why Amazon is the 2026 Large-Cap King
It’s almost a cliché at this point to recommend Amazon. But Mahaney’s thesis for 2026 isn't about people buying toilet paper online. It’s about AWS and a massive "narrative flip" on AI. For a while, the market thought Microsoft had Amazon's lunch because of the OpenAI partnership. Mahaney argues the opposite is happening.
AWS just hit a 20% year-over-year growth rate in late 2025, its fastest clip in nearly three years. That’s huge. It suggests that the "Gen AI" tailwind is finally hitting the cloud infrastructure layer in a way that actually moves the needle. Mahaney has a $335 price target on AMZN, which implies roughly 45% upside. He’s looking at:
- The Ad Business: High-margin revenue that continues to scale.
- Free Cash Flow: He expects this to "inflect up materially" over the next 24 months.
- The Robotaxis: Don't sleep on Zoox. Mahaney sees it as a sleeper catalyst that most analysts are valuing at zero.
Hunting for Value in the Mid-Caps: Expedia and Zillow
If you want more "alpha" than a trillion-dollar titan can give you, Mahaney is pointing people toward the travel and housing sectors. Specifically, Expedia (EXPE) and Zillow (Z).
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Expedia is a "turnaround story" that he thinks the market is pricing all wrong. Most investors are worried about Google taking away travel traffic, but Mahaney is betting on new management’s ability to streamline the platform. With a price-to-sales multiple of around 2.5, it’s trading at a massive discount compared to Booking.com. He’s got a $350 target on it. Honestly, it's a "show-me" story, but the valuation is so low that even a "decent" performance could send it flying.
Then there’s Zillow.
The stock has been absolute garbage lately, down 20% in just a few months. Mahaney calls this a "rare opportunity." He thinks that as housing affordability issues eventually stabilize, the demand for digital real estate services will explode. People still need to move, and they're going to use Zillow to do it. His target? $95. That’s about a 35% jump from where it’s been languishing.
The Mahaney Playbook: What Most People Get Wrong
You shouldn't just blindly copy a list of tickers. That’s a recipe for getting stopped out during a 10% correction. Mahaney’s whole philosophy is built on "Lesson 2" of his book: There will be blood. Even the best stocks, the "Electric 11" as he calls them, have 30% to 40% drawdowns.
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He looks for three things:
- Revenue Growth: If the top line isn't growing, the story is dead.
- Product Innovation: Can they build something new? (Think AWS for Amazon or Reels for Meta).
- Management Quality: Do they actually do what they say they're going to do?
Dealing with the "AI Bubble" Fear
A lot of folks are terrified that we’re in a 1999-style bubble. Mahaney acknowledges the valuation risk but focuses on the "value prop." If a company is using AI to save customers money or make them more efficient, it’s not a bubble; it's a fundamental shift. That’s why he’s still overweight on Alphabet (GOOGL) with a $325 target and Meta (META) with a target near $875. He thinks the "Big Three" in AI—Amazon, Google, Meta—are just too well-capitalized to lose.
Actionable Steps for Your Portfolio
Don't just jump in with both feet. If you're looking to follow the Mark Mahaney stock picks strategy, you have to be tactical.
First, identify which of these names you actually understand. If you don't use Expedia, maybe don't buy it just because a guy in a suit told you to. Use the apps. Check the interface. If the product sucks, the stock eventually will too.
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Second, watch for the "DHQ" moment. Don't buy Amazon when it's at an all-time high and everyone on CNBC is cheering. Wait for the 10% "panic" sell-off when a random macro headline hits. That’s when Mahaney would tell you to pounce.
Finally, keep an eye on his newer "In-Line" or "Hold" ratings like Hims & Hers (HIMS) or Ibotta (IBTA). He’s cautious there for a reason—usually valuation or competitive pressure. The "Outperform" ratings are where he’s putting his reputation on the line.
Track the "Electric 11" names—Amazon, Meta, Google, Netflix, Uber, Booking, DoorDash, Shopify, Spotify, Airbnb, and Palo Alto Networks. These are the core of the modern internet economy. If you can buy any of these during a major market freak-out, you're usually going to look like a genius two years later.
To move forward, start by reviewing your current exposure to these "Internet Titans" and see if you have the stomach for the 30% swings that Mahaney says are a mandatory "tax" for owning high-growth tech. Check the current P/E ratios against their 5-year averages to see if they are truly "dislocated" or just slightly off their highs.