Market Overview

Morgan Stanley Lowered Internet Sector View, Warning on Possible Pullbacks

Share:
Related GOOG
Google Trends Data Suggests Increasing Voter Registrations Among Latinos
AXT Trading At Its Highest Levels Since 2012; Northland Raises Price Target
Bloomberg: Alphabet hires Lazard to evaluate possible Twitter offer; TWTR +5.4% (Seeking Alpha)
Related AMZN
Netflix Spikes On Takeover Chatter
Holiday Hiring: Jingling All The Way To Your Wallet
Lean Long-Term Growth Portfolio - Third Quarter And September 2016 Update (Seeking Alpha)

In a report published Monday, Morgan Stanley analyst Scott Devitt lowered the Internet industry sector view to In-Line.

Devitt noted that the Outperformance of this sector was driven by multiple expansion over positive estimate revisions. Morgan Stanley commented "We believe that growth needs to accelerate to justify recent performance, the absence of which could lead the group multiple to revert to the mean." The analyst warned investors that trading on strong TAM opportunity can face strong pullbacks.

Devitt maintains the Overweight rating on Google (NASDAQ: GOOG), but removed the company from Morgan Stanley's Best Idea List. The analyst continues to favor larger names with "attractive growth" including Amazon.com Inc. (NASDAQ: AMZN), eBay Inc. (NASDAQ: EBAY), Facebook, Inc. (NASDAQ: FB), LinkedIn Corporation (NYSE: LNKD), priceline.com Incorporated (NASDAQ: PCLN), and Google. Devitt further recommends Groupon, Inc. (NASDAQ: GRPN) and Pandora Media, Inc. (NYSE: P). Morgan Stanley is bearish on companies including Zynga, Inc. (NASDAQ: ZNGA), WebMD Health Corp. (NASDAQ: WBMD), and OpenTable, Inc. (NASDAQ: OPEN).

Latest Ratings for GOOG

DateFirmActionFromTo
Jul 2016JP MorganMaintainsOverweight
Apr 2016Deutsche BankMaintainsBuy
Feb 2016OppenheimerMaintainsOutperform

View More Analyst Ratings for GOOG
View the Latest Analyst Ratings

Posted-In: Morgan Stanley Scott DevittAnalyst Color Analyst Ratings

 

Related Articles (AMZN + EBAY)

View Comments and Join the Discussion!