As the first-quarter (Q1) 2024 earnings season approaches, JPMorgan analyst Doug Anmuth, CFA, remains bullish on the Internet sector, citing fundamental drivers and company-specific performance.

Despite some turbulence, the internet sector has seen a weighted average increase of 23% in stock performance year to date.

Anmuth’s key players to watch include Amazon.com Inc (NASDAQ:AMZN), Meta Platforms Inc (NASDAQ:META), and Uber Technologies Inc (NASDAQ:UBER).

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Amazon – Best Idea for 2024

Anmuth maintains Amazon as the top pick, calling it JPMorgan’s “Best Idea for 2024”. He emphasized its robust fundamentals and growth prospects.

He anticipates accelerated growth in Amazon Web Services (AWS) throughout 2024, fueled by easing optimizations, new workload deployments, and early monetization of General Artificial Intelligence (GenAI).

Additionally, strong growth in North America, improved international profitability, and disciplined cost management contribute to a multi-year Free Cash Flow (FCF) ramp. Investors are eyeing first-quarter net sales of $142B-$144B and AWS growth exceeding 15%, among other key metrics, indicating positive sentiment towards Amazon’s performance.

Meta – Room For Upside Potential

Meta’s solid first-quarter advertising checks and emergence as an AI leader in the ad sector bode well for the stock. Anmuth also shed light on the role of GenAI (General Artificial Intelligence) in investor discussions. While early benefits are primarily seen in coding efficiencies and cost savings, Meta stands out for its effective use of AI in enhancing its advertising capabilities.

Despite tougher year-over-year comparisons, Meta’s revenue is expected to meet or exceed guidance, with a mid-teens growth projection for the year.

With Meta trading at a modest 21x 2025E GAAP EPS, Anmuth sees room for upside potential, especially considering its position relative to other major companies.

On Monday, April 15, Meta won the dismissal of some claims in a dozen lawsuits accusing its CEO Mark Zuckerberg of concealing from the public that Facebook and Instagram were harmful to children.

Uber – Promising Three-Year Outlook

Uber continues to be a favored pick, with its resilience in demand, profitability initiatives, and promising three-year outlook.

Although some key catalysts like GAAP profitability and S&P 500 inclusion have passed, Anmuth believes Uber’s shares can still deliver through continued execution and earnings growth.

The company’s shift towards absolute profit dollar growth rather than incremental margins aligns with its focus on profitability. Anmuth also sees upside potential in Uber’s $7 billion buyback plan running through 2026.

In summary, JPMorgan’s outlook for the Internet sector remains bullish, with Amazon, Meta, and Uber positioned as top picks. The integration of artificial intelligence, especially in Meta’s case, underscores its potential to drive future growth.

However, cautious optimism is advised, considering potential challenges such as growth deceleration and high valuations in certain cases.

Read Next: Why Microsoft, Alphabet, Amazon, Palantir, And Meta Could Rise 15% In 2024, According To Analyst

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M&T Bank Corporation (NYSE: MTB) reported in-line first-quarter earnings on Monday.

Revenue of $2.260 billion, slightly missing the consensus of $2.263 billion. Net income of $531 million came below $702 million a year ago. EPS was $3.09, which came in line with the consensus, according to data from Benzinga Pro.

M&T held total assets of $211.5 billion as of March 31, 2024. Loans and leases, net of unearned discount, were $133.8 billion. The CET1 capital ratio was estimated at 11.07% as of March 31, 2024.

Daryl N. Bible, M&T’s Chief Financial Officer, said,“We are off to a solid start in 2024 as we were able to grow certain sectors of our commercial and consumer loan portfolios, while continuing to shrink our commercial real estate exposure. Expenses were prudently managed in the recent quarter and our selective approach to allocating resources to our strategic priorities with utmost care has not wavered.”

M&T Bank shares gained 4.6% to close at $140.94 on Monday.

These analysts made changes to their price targets on M&T Bank following earnings announcement.

• B of A Securities raised the price target on M&T Bank from $157 to $160. B of A Securities analyst Ebrahim Poonawala maintained a Buy rating.
• Wells Fargo raised the price target on M&T Bank from $145 to $150. Wells Fargo analyst Mike Mayo maintained an Equal-Weight rating.
• RBC Capital analyst Gerard Cassidy, meanwhile, reiterated M&T Bank with an Outperform and maintained a $160 price target.

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The Dow Jones index closed lower by more than 200 points on Monday. When insiders purchase or sell shares, it indicates their confidence or concern around the company's prospects. Investors and traders interested in penny stocks can consider this a factor in their overall investment or trading decision.

Below is a look at a few recent notable insider transactions for penny stocks. For more, check out Benzinga's insider transactions platform.

Nauticus Robotics

• The Trade: Nauticus Robotics, Inc. (NASDAQ: KITT) Director William Flores acquired a total of 100,000 shares an average price of $0.23. To acquire these shares, it cost around $22,702.
• What’s Happening: On April 9, Nauticus Robotics posted a wider fourth-quarter loss.
• What Nauticus Robotics Does: Nauticus Robotics Inc develops autonomous robots for the ocean industries. The company's business model includes using robotic systems for service, selling vehicles and components, and licensing of related software to both the commercial and defense business sectors.

Blend Labs

• The Trade: Blend Labs, Inc. (NYSE: BLND) Head of Finance and Admin. Amir Jafari acquired a total of 6,265 shares at at an average price of $2.65. To acquire these shares, it cost around $16,588.
• What’s Happening: On March 14, Blend Labs posted downbeat quarterly sales.
• What Blend Labs Does: Blend Labs Inc is a cloud-based platform software platform that powers the digital interface between financial services firms and consumers. It supports and simplifies applications for mortgages, consumer loans, and deposit accounts.

Check This Out: Bank of America, Morgan Stanley And 3 Stocks To Watch Heading Into Tuesday

ProtoKinetix

• The Trade: ProtoKinetix, Incorporated (OTC: PKTX) President and CEO Clarence Edward Smith acquired a total of 3,166,667 shares at an average price of $0.01. The insider spent around $35,000 to buy those shares.
• What’s Happening: The company’s stock lost around 25% over the past month.
• What ProtoKinetix Does: ProtoKinetix Inc is a research and development stage biotechnology company focused on scientific medical research of AFGPs (Anti-Freeze Glycoproteins).

Don’t forget to check out our premarket coverage here

In a strategic shift, Boeing Co. (NYSE:BA) reportedly parted ways with the lobbying firm that played a pivotal role during one of the company’s most challenging periods.

What Happened: Boeing ended its contract with Cornerstone Government Affairs, the lobbying firm that assisted the aerospace giant during the 737 Max disaster, in February, Bloomberg reported on Tuesday.

The decision to cut ties in February was made by Ziad "Z" Ojakli, Boeing’s chief lobbyist, after learning that Cornerstone had taken on Sierra Space Corp., a client now represented by Ojakli’s predecessor, Tim Keating. This move comes amid Boeing’s efforts to revamp its leadership and lobbying strategies following the fatal crashes in 2018 and 2019.

The leadership overhaul at Boeing began with CEO Dave Calhoun’s decision to replace Keating with Ojakli, a former lobbyist for Ford Motor Co., in 2021. The transition has reportedly been challenging, with new hires still adjusting to the aerospace sector and struggling to establish connections with key lawmakers.

At the time of publishing, Boeing and Cornerstone have yet to comment on the matter to Benzinga.

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In 2023, Boeing reportedly invested $14.4 million in lobbying efforts and maintains a robust team of over 100 lobbyists and 17 government affairs firms. Its political action committee is currently the second-largest in the U.S., based on Federal Election Commission data.

Why It Matters: Boeing’s decision to discontinue its relationship with Cornerstone Government Affairs is a significant move in the company’s ongoing efforts to navigate post-crisis recovery and restore its reputation. The aerospace manufacturer has faced a series of setbacks, including a recent incident involving a Delta Air Lines flight, where a Boeing 757 was reported to be “yawing aggressively,” prompting a return to Atlanta shortly after takeoff.

The company’s challenges are further compounded by a dip in commercial aircraft deliveries. Boeing’s first-quarter deliveries in 2024 fell significantly, with only 83 commercial aircraft delivered compared to 130 in the same period the previous year. This decline reflects ongoing industry turbulence and underscores the importance of Boeing’s strategic realignment, including its lobbying efforts.

As of Monday, Boeing stock closed at $167.82, indicating a drop of 1.02%, according to Benzinga Pro.

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