As we kick off the new year, Amazon.com, Trade Desk, and Meta Platforms are emerging as the top picks within the internet sector, according to a Wall Street team. In their recent report, Stifel analysts, led by Mark Kelley, have shared their updated thoughts as they enter 2024 and revise their digital advertising growth expectations for the year.
Amazon’s Growth Potential
Stifel analysts are particularly focused on a few key aspects when it comes to Amazon. They are closely watching for potential margin improvement as well as the introduction of new advertising formats. With these developments, Amazon has the opportunity to further solidify its position in the digital advertising space.
Trade Desk: Continued Market-Share Gains
Meanwhile, Trade Desk, a digital marketing company, has also caught Stifel’s attention. The analysts are impressed by the company’s consistent market-share gains and anticipate that this trend will continue. As advertising during election seasons tends to surge, Trade Desk stands to benefit from this uptick in ad volume.
Lastly, Stifel is closely monitoring Meta, formerly known as Facebook. They are particularly interested in two key initiatives: Reels, Meta’s short-video platform, and Advantage+, an artificial intelligence initiative designed to enhance its advertising offerings. By focusing on these innovations, Meta can further strengthen its position in the market.
Stifel rates all three stocks, Amazon, Trade Desk, and Meta, as Buy. They have adjusted their price targets for Amazon and Trade Desk to $175 and $80, respectively. Their price target for Meta remains at $405.
In premarket trading, Amazon experienced a slight decline of 0.7% to $148.13 while Trade Desk maintained stability at $69. Meta saw a marginal dip of 0.4% to $357.13. Futures on the S&P 500 were 0.6% lower.
It’s worth noting that Stifel is not the only one optimistic about these three stocks. BofA Securities has highlighted Amazon’s potential for increased advertising revenue growth, especially with the addition of ads to Prime Video. Similarly, tech-focused hedge fund manager, Dan Niles of Satori Fund, believes that Meta’s ad volumes will rise due to the election year.
Overall, Amazon, Trade Desk, and Meta are positioned well for success in the internet sector. With their respective strategies and market opportunities, these stocks are ones to watch in 2024.