Home Daily Blitz Internet Stocks Are Still Looking Good for 2017

Internet Stocks Are Still Looking Good for 2017


The following is an excerpt from Alex Eule | December 16, 2016 | Barrons.com |

Forget the Trump-led shift to financial stocks, the Internet sector still offers plenty of growth.

“This sector is (largely) about innovation over infrastructure…code over cement…and we think this has been and will continue to be a good recipe for investors…and the economy,” analyst Mark Mahaney and his team at RBC Capital Markets wrote in a note to clients on Thursday.

The firm names seven “core” Internet stocks: Amazon.com, Alibaba, Expedia, Facebook, Alphabet, Netflix, and Priceline. All but Alibaba and Priceline are in the Barron’s Next 50 -- the stocks we think matter most to millennials.

One of RBC’s top smaller Internet names is Yelp, which is also in the Next 50.

Mahaney sees 10 factors that could continue to drive Internet stocks higher, including the still-ongoing behavioral shift to mobile, the continued rise of cloud-based computing, the likelihood of more acquisitions, a surge in Internet-based video, and more transparent earnings reports.

Of the big Internet names, RBC ultimately whittles the list down to three stocks it likes the most: Netflix, Facebook, and Amazon.

For more visit: Barrons.com