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PUNTOS IMPORTANTES:
- JPMorgan named its three favorite internet stocks for next year, including Amazon.
- Bank analyst Doug Anmuth believes this sector will see big gains in 2024.
- According to the expert, investors on Wall Street are once again betting on large-cap technology stocks.
JPMorgan projects that the S&P 500 will not rise as much next year, however, it sees great potential in some internet stocks.
The investment bank believes that these types of companies will experience substantial profits in 2024.
“After significant cost rationalization in 2023, we believe margin gains will likely be more varied in 2024,” commented the analyst Doug Anmuth.
For the expert, the valuations of these companies have recovered from their 2022 lows, although the returns within the sector will be varied, so it is important to do a good analysis.
The 3 internet stocks that JPMorgan chose
Your favorite company targeting next year is Amazon. Anmuth believes the firm’s revenue will grow, especially in its online sales service.
The analyst also expects more efficient margins and free cash flow generation, along with progress in its AI and cloud businesses.
Amazon shares have accumulated a gain of more than 77% so far this year.
The second company is Alphabet, the parent company of Google, in which it established a target price of 160 USD for 2024, which implies a potential increase of 20%.
Google shares are up more than 50% this year.
The last firm that JPMorgan highlighted is Uber.
“We expect mobility and delivery demand to remain healthy despite macroeconomic headwinds, and that supply tailwind will further aid growth and profitability ”, mentioned the analyst.
For the coming year, Anmuth raised the company’s price target to $76 per share, representing a potential 23% upside to Wednesday’s close.
The company’s shares have skyrocketed more than 150% so far this year.