A New Era of Economic Growth: Top Internet Stocks to Buy
As the new Presidential administration prepares to take office, a sense of change is palpable. With a focus on pro-business and growth-oriented economic policies, the stage is set for a continued bull run in the stock markets.
Sound Fundamentals Support Internet Stocks
According to Shweta Khajuria, a top analyst at Wolfe Research, the internet sector is poised for growth, driven by sound consumer demand, lower interest rates, and low unemployment. Khajuria remains optimistic about the sector, citing stable fundamentals, healthy top-line growth, and ongoing margin expansion.
Top Internet Stocks to Buy: Amazon
Amazon, the e-commerce giant, is a prime example of a company that has successfully navigated the dot-com bubble and emerged as a leader in cloud computing and AI services. With a market cap of $2.39 trillion, Amazon boasts a diverse revenue stream, with its online retail business accounting for 83% of total revenue. The company’s cloud computing subscription service, AWS, has seen impressive growth, expanding 19% year-over-year.
Khajuria is bullish on Amazon, citing its strengths in retail margins, sustainable AWS revenue growth, and market share consolidation. She puts an Outperform rating on the stock, with a $270 price target, implying a 21% upside potential over the next 12 months.
Top Internet Stocks to Buy: Meta Platforms
Meta Platforms, the parent company of Facebook, Instagram, Messenger, and WhatsApp, is a global leader in social media. With a collective daily active user base of 3.29 billion, Meta has unparalleled reach and access to a vast well of data. The company’s digital advertising business has seen solid growth, with an 11% year-over-year increase in average ad prices.
Khajuria remains constructive on Meta, citing its ability to adapt to changing conditions, its strength in video apps, and its potential to benefit from the TikTok divestiture. She puts an Outperform rating on the stock, with a $730 price target, implying a 16% upside potential over the next 12 months.
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Disclaimer
The opinions expressed in this article are solely those of the featured analyst. The content is intended to be used for informational purposes only. It is very important to do your own analysis before making any investment.
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