JPMorgan Reiterates Amazon, Booking, and Uber as Top Internet Stocks to Own

JPMorgan analyst Doug Anmuth revisited the bank’s research coverage of Internet stocks to cut estimates and price targets on 26 companies to reflect “macro pressures, FX, & company-specific dynamics.”

The analyst notes a deteriorating macro environment amid surging fuel prices and high inflation, while JPMorgan economists see a 66% chance of a recession over the next two years and an 83% chance over the next three years.

“The Internet sector continues to have secular growth, but it is far more mature than in 2008-2009, and the ability to offset broader, macro trends is more limited. As a result, all of our companies are at risk in a slowing environment. Our biggest estimate reductions come in Online Advertising & ECommerce, though we are also reducing numbers across Subscription/Online Education, Online Travel, Rides & Food, & Work Related names in anticipation of a weaker operating environment in 2H22 & into 2023,” Anmuth told clients in a note.

On a more positive note, the analyst sees many of these risks already priced in as he reiterated Amazon (NASDAQ: AMZN), Booking (NASDAQ: BKNG), and Uber (NASDAQ: UBER) as the Best Ideas in this sector.

Among other price target changes, Anmuth cut the price objective on Alphabet (NASDAQ: GOOGL) to $2,800.00, on Amazon to $175.00 from $200.00, on Meta Platforms (NASDAQ: META) to $225.00 from $275.00, on Netflix (NASDAQ: NFLX) to $230.00 from $300.00.

By Senad Karaahmetovic

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