Wolfe Research Picks Amazon, Alphabet, and DoorDash for Significant Growth
Wolfe Research has identified three top stock picks for the next 12 months across various sectors, including cloud computing, digital advertising, and food delivery. The research firm's analysis focuses on companies with strong margin expansion potential, operational efficiencies, and exposure to high-growth markets.
The first pick is Amazon.com Inc (AMZN), which Wolfe Research expects to see upside in its AWS operating income and margins alongside revenue growth. The firm anticipates accelerating AWS growth throughout the year, with low-40% growth in the third quarter and at least mid-40% in the fourth quarter, resulting in high-30% year-over-year growth.
Wolfe Research also sees upside to Google Cloud Platform revenue and margins for Alphabet Inc (GOOGL), driven by meaningful TPU sales in 2027 and 2028. The firm believes Google is the best-positioned company among Internet mega caps, citing its fully vertically integrated value proposition, Search leadership, Waymo, Anthropic, and SpaceX investments, and YouTube.
The third pick is DoorDash Inc (DASH), which Wolfe Research sees upside to consensus revenue growth and 2027 EBITDA driven by product initiatives, resilient customer demand and stickiness, grocery expansion, international share gains, and improving unit economics. The company should benefit from ongoing growth levers including DashPass subscription service, autonomous delivery, merchant integrations, and advertising.