Investors appear to have fled to Internet stocks for safety following the Brexit vote, which introduced a lot of volatility and uncertainty in the market.
According to Youssef Squali of Cantor Fitzgerald, Internet stocks proved to be "resilient" after a week of "price gyrations." The sector ended up 0.9 percent on the week post-Brexit and 3.4 percent higher year-to-date.
Squali noted that Internet stocks were also boosted from several positive data points.
4 Points
1. A survey which indicated 42 percent of U.S. shoppers will use Amazon.com, Inc. (NASDAQ: AMZN) as a primary shopping tool this holiday season. The analyst noted this is "incrementally positive" for Amazon heading into the important shopping season and the online retailer will likely see above-industry growth rates for the foreseeable future.
Related Link: Post-Brexit Panic Isn't Over, CNN Money's LaMonica Says
2. Facebook Inc (NASDAQ: FB) introduced a change to its news feed algorithm. This change is "ultimately healthy" for user engagement on the social media and is a sign of the company's dedication to constant improvement.
3. Snapchat lowered the price for its advertisers and ads cost a $100,000 minimum compared to $750,000 in late 2014 and Instagram's $500,000 minimum. The new lower price will encourage more brands to "get involved." Also, new estimates are projecting Snapchat's user base will grow to 58.6 million by the end of the year and exceed Twitter Inc (NYSE: TWTR)'s 56.8 million users and Pinterest's 54.6 million.
4. Finally, programmatic TV is expected to surge from $710 million in 2016 to $4.4 billion in 2018, marking a "huge" growth rate but still only accounting for 6 percent of total TV spend.
Latest Ratings for AMZN
| Date | Firm | Action | From | To |
|---|
| Mar 2022 | Deutsche Bank | Initiates Coverage On | | Buy |
| Feb 2022 | Tigress Financial | Maintains | | Buy |
| Feb 2022 | Credit Suisse | Maintains | | Outperform |
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