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The 5 Big-Cap Internet Stocks With The Strongest Fundamentals

The companies with the best fundamentals among large-cap Internet stocks are Facebook ( FB ), Amazon.com ( AMZN ), Netflix ( NFLX ), Alphabet ( GOOGL ) and Priceline ( PCLN ), says RBC Capital Markets. Internet trends for these top five in their respective sectors — online advertising, retail and travel — remain very consistent, with strong revenue growth year over year, RBC said in a research report. Online advertising seems to be flowing en mass to Google-owner Alphabet and Facebook, with the two now accounting for close to 55% of global online advertising revenue, up from 50% three years ago, says the report from RBC analyst Mark Mahaney. And Amazon continues to show dramatically greater-than-average growth in the online retail sector. “We believe online retail demand trends have remained solid, particularly highlighted by Amazon’s retail sales acceleration,” Mahaney wrote. But, he said, “there’s little ad oxygen for the likes of Yahoo ( YHOO ).” Online travel remains a duopoly of Priceline and Expedia ( EXPE ), while it’s increasingly hard to see anyone catching up to Netflix in terms of video-streaming subscribers, he wrote. Netflix Though shares of Netflix have continued to decline following Q1’s weak international subscriber guidance and domestic price change worries, “We view the fundamental global subscriber growth story as intact,” Mahaney said. Mahaney has a price target on Netflix of 140. Netflix rose 1.4% to 89.12 in the stock market today . The stock is down 20% since reporting first-quarter earnings on April 18, and it’s on the IBD Swing Trader list as a potential short-sale opportunity. Priceline He has a price target on Priceline of 1,600, as growth and profitability trends remain intact. Priceline stock rose 0.4% to 1283.47 on Monday. Priceline is down 6% since reporting Q1 earnings on May 4. Alphabet On Alphabet, Mahaney’s price target is 1,000, as it remains one of the best portfolio plays on the biggest Internet trends. Alphabet stock climbed 0.75% to 730.30 Monday. The stock is down 7% since reporting Q1 earnings on April 21. Facebook On Facebook, the price target is 165, with Mahaney saying the social media company is firing on all cylinders. Facebook stock fell about 1% to 118.67, but it’s up 8% since reporting Q1 earnings on April 27. Facebook is holding above a buy point at 117.09. Amazon The price target on Amazon is 800. Amazon stock edged up 0.1% to 710.68. Still, it’s up 16% since reporting Q1 earnings on April 28. It also is on Swing Trader, but as a long possibility.

Five Top Picks In The Internet Sector With Strongest Fundamentals

The companies with the best fundamentals among large-cap Internet stocks are Facebook ( FB ), Amazon.com ( AMZN ), Netflix ( NFLX ), Alphabet ( GOOGL ) and Priceline ( PCLN ), says RBC Capital Markets. Internet trends for these top five in their respective sectors — online advertising, retail and travel — remain very consistent, with strong revenue growth year over year, RBC said in a research report. Online advertising seems to be flowing en mass to Google-owner Alphabet and Facebook, with the two now accounting for close to 55% of global online advertising revenue, up from 50% three years ago, says the report from RBC analyst Mark Mahaney. And Amazon continues to show dramatically greater-than-average growth in the online retail sector. “We believe online retail demand trends have remained solid, particularly highlighted by Amazon’s retail sales acceleration,” Mahaney wrote. But, he said, “there’s little ad oxygen for the likes of Yahoo ( YHOO ).” Online travel remains a duopoly of Priceline and Expedia ( EXPE ), while it’s increasingly hard to see anyone catching up to Netflix in terms of video-streaming subscribers, he wrote. Though shares of Netflix have continued to decline following Q1’s weak international sub guidance and domestic price change worries, “We view the fundamental global subscriber growth story as intact,” Mahaney said. Mahaney has a price target on Netflix of 140. Netflix stock was trading near 89, up nearly 2%, in afternoon trading in the stock market today . The stock is down 20% since reporting first-quarter earnings on April 18, and it’s on the IBD Swing Trader list as a potential short-sale opportunity. He has a price target on Priceline of 1,600, as growth and profitability trends remain intact. Priceline stock was up a fraction near 1,279 Monday afternoon. Priceline is down 6% since reporting Q1 earnings on May 4. On Alphabet, Mahaney’s price target is 1,000, as it remains one of the best portfolio plays on the biggest Internet trends. Alphabet stock was near 727, up a fraction, Monday afternoon. The stock is down 7% since reporting Q1 earnings on April 21. On Facebook, the price target is 165, with Mahaney saying the social media company is firing on all cylinders. Facebook stock was near 118, down 1%, but it’s up 8% since reporting Q1 earnings on April 27. The price target on Amazon is 800. Amazon stock was flat, near 709. Still, it’s up 16% since reporting Q1 earnings on April 28. It also is on Swing Trader, but as a long possibility.

Netflix Gets Vote Of Confidence From RBC Amid Heightened Skepticism

Internet television network Netflix ( NFLX ) has lost 18% of its value since reporting Q1 earnings and offering weak subscriber guidance for Q2. But RBC analyst Mark Mahaney says concerns about Netflix’s prospects are overblown. In a research report Sunday, Mahaney reiterated his outperform rating on Netflix stock, with a price target of 140. Netflix stock was up more than 2%, near 90, in morning trading on the stock market today . Shares have been falling, though, and it’s on IBD Swing Trader as a short-sale possibility. On Friday, Dan Nathan, founder of RiskReversal.com, told CNBC that options volume has grown increasingly bearish on Netflix, pointing to negative sentiment on Wall Street. Netflix has an IBD Accumulation/Distribution Rating of D+, indicating more institutional selling than buying. But the market’s concerns about Netflix’s profitability, international growth and competition are “overstated,” Mahaney said. “We still think NFLX can double in three years.” Netflix has proven profitability, a universal value proposition, material scale advantages and an excellent management team, Mahaney said. Netflix handily beat subscriber goals in the first quarter, but its target for new international subscribers in Q2 of 2 million was almost 1 million below Wall Street estimates. In the U.S., Netflix expects to add just 500,000 new subscribers as price hikes kick in for existing subscribers, increasing member churn. Meanwhile, Netflix is facing increased competition at home and abroad. In the U.S., Amazon.com ( AMZN ) and Hulu are ramping up their original and exclusive content offerings. In the U.K., the BBC is working on an online streaming service with the working name “Britflix” that would compete with the likes of Netflix, according to media reports. RELATED: Netflix Stock Gets Belated Price-Target Cut From UBS 5 Key Takeaways From Netflix’s Troubling Q1 Earnings Report Amazon Goes Head-To-Head With Netflix In Streaming Video