As 2025 kicks off, investors are feeling bullish about the U.S. Internet sector—and JPMorgan analyst Doug Anmuth's latest survey suggests optimism is running high.
Nearly 100 investors shared their insights, revealing a market eager for tech-driven innovation despite looming challenges.
The Internet Sector's Moment To Shine
Roughly 79% of respondents anticipate market-cap-weighted Internet stocks to climb over 5% this year, outpacing expectations for the S&P 500.
Advances in technology, return on AI investments, and upward earnings revisions are seen as key tailwinds pushing growth forward.
But it's not all smooth sailing—concerns over AI monetization, heavy capital expenditures, and valuation worries persist.
Alphabet Is Still King
Investors overwhelmingly picked Alphabet Inc (NASDAQ:GOOGL) (NASDAQ:GOOG) as the best-performing Mega Cap stock of 2025, with 43% favoring it over rivals.
Despite AI excitement, Meta Platforms Inc (NASDAQ:META) isn't getting much love, with 46% pegging it as the year's weakest link among the Magnificent Seven stocks.
Uber Takes The Wheel
Uber Technologies Inc (NYSE:UBER) emerged as the investor favorite among large-cap stocks, expected to outpace its peers in the ride-share and food delivery space.
Subscription models and online advertising were highlighted as the top-performing subsectors, with Alphabet dominating the ad race by a wide margin.
GenAI: Big Buzz, Small Bucks?
While 37% of respondents anticipate new Generative AI applications to make waves, only 6% foresee immediate revenue boosts.
Alphabet is seen as the biggest beneficiary of AI advancements, solidifying its position as the market leader.
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