Anthony DiClemente, a Senior Managing Director at Evercore ISI, has released insights pertaining to a range of internet stocks.
He argues that the incredibly high valuations of many internet stocks are justified, and that there is a difference between these valuations and the dot-com bubble.
Coverage from barrons.com states that select internet stocks boast “real earnings growth, real cash flow, and “reasonable” valuations–while they may not look like a bargain at first glance, multiples are at least supported by strong fundamentals.”
FANG stocks – Facebook, Amazon, Netflix and Google stocks – are lauded in his analysis. Online dating stock, however, also comes in for praise.
IAC and Match Group stocks are ranked among DiClemente’s ‘top picks’. “IAC complex has a stronghold in the online dating and home services markets”, he claims.
He feels Google is positioning itself well to capitalise on the shift towards autonomous vehicles, whereas Amazon is set to benefit from the digitalisation of grocery shopping.
Facebook and Google are the best placed to profit from a transition towards online video. Snap (parent of Snapchat) stock is rated at underperform.
There is a potential risk of over regulation in both Europe and the US, DiClemente warns, but he feels that this is already priced into the stock.
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