Internet Large Cap / Internet Small and Midcap — Fall 2026 Sector Update

J.P. Morgan's Fall 2026 Internet sector update covers large cap and small/mid cap internet names including Amazon, Alphabet, Meta, SpaceX, Netflix, Spotify, Uber, DoorDash, Booking, Airbnb, Shopify, Roblox, AppLovin, Reddit, Pinterest and Snap. Year-to-date in 2026 the internet group has broadly underperformed the S&P 500, with only about one third of covered stocks up: mega caps averaged +7% led by Amazon and Alphabet, mid caps -3%, small caps -15%, and sub-$2B names -19%. The group is expected to grow revenue at roughly a 15% CAGR from 2026-2028E and trades at about 9x 2028E EV/EBITDA on average; names screening most favorably on above-average growth and below-average multiple are Meta, Uber, Lime, Coursera and Opendoor. Key 2Q themes: AI returns increasingly evident across cloud, ads and enterprise alongside capex and FCF pressure; subscription focus on engagement and AI strategy; bifurcated advertising sentiment; rides and food profit upside on unit economics;