The Internet space is at an all time high nowadays in terms of market capitalization and valuations, Mahaney explicated. However, some of these stocks are still worth buying – while some others are clearly worth avoiding, he continued.
Among the stocks Mahaney likes is unsurprisingly Facebook Inc FB.
The social media behemoth “continues to prove that it can sustain close to 60 percent advertising revenue growth, 1.5 billion users, people who engage more and more with Facebook on a daily basis; so that’s still a winner on our book,” he stated.
Also on the analyst’s Buy list is LinkedIn Corp LNKD.
Although the stock has been slightly underperforming year-to-date, RBC thinks the company offers “a very good platform [with] 400 million registered users, rising levels of engagement, high levels of profitability.”
Stocks To Avoid
Mahaney then went into stocks to avoid, among which he included Twitter Inc TWTR, since it trades at a more expensive valuation than either of the aforementioned, even though it offers slower long-term growth prospects.
“We’ve seen a lot of execution errors,” the expert added, assuring “it’s going to take a while to turn this around, if they are able to do that.”
Other companies in the “stay clear” list included Yahoo! Inc. YHOO and Groupon Inc GRPN, “stocks and companies that have been around for a while, that are going through near-term execution issues, uncertain option value and long-term growth outlooks that are also uncertain,” he concluded.
Disclosure: Javier Hasse holds no positions in any of the securities mentioned above.
Image Credit: Public Domain© 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
date | ticker | name | Price Target | Upside/Downside | Recommendation | Firm |
|---|
Trade confidently with insights and alerts from analyst ratings, free reports and breaking news that affects the stocks you care about.
