:max_bytes(150000):strip_icc()/GettyImages-2233777305-69af6498d61b4e06bd9898d44c82c969.jpg "These Experts Have 6 Top Internet Stock Picks Lined Up for Next Year")
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Key Takeaways
- Worries about an AI bubble have led to a pullback in the tech sector, though Jefferies analysts said they still see gains for some standouts with strong fundamentals.
- Their top internet stock picks heading into 2026 are AppLovin, Reddit, Roku, Spotify, Uber, and Zillow.
Jefferies has some ideas about where tech investors should look after a tough stretch for the sector.
Tech stocks took a hit last week, with cloud computing giant Oracle (ORCL) and chipmaker Broadcom (AVGO) at the forefront after quarterly earnings that failed to impress investors amid growing skepticism around the AI trade. But Jefferies analysts told clients amid Thursday’s selloff that they still see gains for some standouts in the sector, which they identified for their “peer-leading growth” and strong fundamentals.
All but one of the stocks Jefferies highlighted have already seen big gains 2025, outperforming both the S&P 500 and industry peers. Here are the analysts’ ideas.
Why This Matters for Investors
Worries about an AI bubble have rattled markets in recent months, weighing on the tech sector. Some tech stocks have fared better than others, leaving many investors wondering how to pick winners from a crowded field of stocks, many which have retreated from recent highs.
One of Jefferies’ top picks is adtech company AppLovin (APP). Though the stock’s torrid rise was wracked by short-seller allegations of sketchy practices earlier this year, it has still more than doubled in value in 2025, reaching a fresh high near $725 last week.
Jefferies said it sees more gains ahead, with AppLovin expected to make a change in the first half of 2026 that would dramatically expand its business by opening up access to its referral-based advertising platform to more customers. Even among Wall Street’s biggest AppLovin bulls, few are quite as bullish as Jefferies, however, with a Street-high target of $860 suggesting nearly 30% upside from Friday’s close.
Reddit (RDDT), Spotify (SPOT) and Roku (ROKU), which have all added over a third of their value in 2025, were among Jefferies’ top picks based on hopes that new features and user experience improvements could drive higher engagement and share prices. Jefferies has a $325 target for Reddit and $135 objective for Roku, suggesting gains of about 45% and 33%, respectively. The firm’s $800 target for Spotify would point to a roughly 26% rise. All three levels exceed the consensus projections of analysts surveyed by Visible Alpha.
Uber (UBER) and Zillow (Z) rounded out the group. Uber, which is up some 40% year-to-date, could climb another roughly 40%, to $120, said Jefferies, with gains from robotaxi partnerships, new delivery customers, and inroads with previously underrepresented demographic groups seen helping sustain its recent momentum.
Zillow, which as of Friday was down some 17% from its September highs above $90 amid worries about ongoing legal challenges, competition, and a muted housing market, finished last week less than 1% higher from where it was when the year began—then fell further today. Jefferies said it sees a full recovery for the stock and more, with a $100 target as the real estate marketplace rolls out new tools and incentives for agents.
