RBC Capital Likes These 5 Internet Stocks on March Sell-Off

With the Internet sector down 17% since March 5, RBC Capital analyst Mark Mahaney laid out his best buys among the carnage heading into earnings season:

1) Priceline (NASDAQ: PCLN) ($1,500 PT) – This shouldn't be a surprise, as PCLN has among the least risk to Street Q1 estimates; 11% intra-quarter correction creates opportunity; and PCLN’s Long Thesis is very much intact (see our 3/24 “Updating the Long Thesis” report);

2) Amazon (NASDAQ: AMZN) ($425 PT) – Reasonably low risk to Street Q1 estimates (with CSOI estimates more reasonable than at any time in last two years); 11% intra-quarter correction creates opportunity; AMZN’s current EV/EBITDA multiple is 16% below its average; and AMZN’s Long Thesis should be very much intact (with Apparel and CPG as new growth drivers, along with AWS, International Media recovery, and margin expansion thanks to fulfillment leverage); and

3) Netflix (NASDAQ: NFLX) ($500 PT) – Reasonably low risk to Street Q1 estimates (due to subscription model visibility and our positive quarterly survey results); 13% intra-quarter correction creates opportunity; NFLX’s current EV/EBITDA multiple is 10% below its average; and NFLX’s Long Thesis is very much intact.

They continue to list with Google (NASDAQ: GOOG) ($710 PT) and Facebook (NASDAQ: FB) ($76 PT) as among their Top Large Cap Buy Recommendations.

You May Also Be Interested In

• Gilead Sciences (GILD) Misses Q1 EPS by 288c
• Minerals Technologies (MTX) Tops Q1 EPS by 16c
• AptarGroup (ATR) Tops Q1 EPS by 11c