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From Amazon To Zynga: Your Internet Stock Q2 Preview And Morgan Stanley's Top Picks

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From Amazon To Zynga: Your Internet Stock Q2 Preview And Morgan Stanley's Top Picks

As earnings season for the internet sector approaches, Morgan Stanley analyst Brian Nowak named his top picks.

Large-Cap Top Picks

  • Amazon.com, Inc. (NASDAQ: AMZN): Overweight, $1,200 price target. Amazon’s scaling high margin revenues will raise gross profit estimates according to Nowak.
  • Alphabet Inc (NASDAQ: GOOG) (NASDAQ: GOOGL): Overweight, $1,050 price target. Nowak is bullish on Google as he believes the market question on the EC Ruling and on Youtube are overdone. “We are ~3% ahead of Street 2Q GAAP EPS after adjusting for the ~$2.7bn EC charge recognized this quarter,” he said.
  • Priceline Group Inc (NASDAQ: PCLN): Overweight, $2,100 price target. Three data sets show strong U.S. Booking.com traction.
  • Activision Blizzard, Inc. (NASDAQ: ATVI): Overweight, $67 PT. Nowak sees 26 percent upside to the Street’s Q2 adjusted EPS; he also expects “new details on Overwatch League structure/timing/accounting to advance eSports narrative and multiple.”

Small-Cap Picks

  • Zynga Inc (NASDAQ: ZNGA): Overweight, $3.70 price target.
  • Trivago NV - ADR (NASDAQ: TRVG): Overweight, $25 price target.

Cautious Picks

  • Twitter Inc (NYSE: TWTR): Underweight, $10 price target. “We have not heard of any material change in advertiser intent to spend in the near term and continue to see negative revision risk to 2H:17 and 2018,” Nowak said.
  • EBay Inc (NASDAQ: EBAY): Underweight, $28 price target. Nowak expects eBay to have to invest more to grow than the company initially expected, which limits upward revisions.

To read the latest news on Morgan Stanley's Top Picks visit the Benzinga Pro news wire.

Latest Ratings for AMZN

DateFirmActionFromTo
Aug 2019AssumesBuy
Jul 2019MaintainsOutperform
Jul 2019MaintainsOutperform

View More Analyst Ratings for AMZN
View the Latest Analyst Ratings

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