In fact, advertising and marketing spending could explode to nearly $ 390 billion by 2020 alone. Even the World Advertising and Research Center has said advertising spending will increase by 6% this year to $ 656 billion, by more than half for the first time against digital advertising.
Major viral events such as the 2020 Olympics and the US presidential election should provide a boost to related stocks also through sponsorship. With such growth pending, it only makes sense to look at the companies that benefit from it.
So, let’s take a look at three of the best internet stocks out there.
Top Internet Shares 2020: Facebook (FB)
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Shares on Facebook (NASDAQ: FB) declined at the end of January 2020 after reporting rising costs and a reduced operating margin. All after hitting the top and bottom line with earnings per share (EPS) of $ 2.56, compared to $ 2.53 expectations for sales of $ 21.08 billion, compared to estimates of $ 20.89 billion.
However, the FB share is only beginning to recover.
Given that the company expects a further slowdown in sales growth, as CFO Dave Wehner noted. At the same time, however, FB sees tremendous user growth with a current base of 2.5 billion active users (MAU) – an increase of 2% compared to the third quarter of 2019. FB also earns on its private messaging programs and tests instant ads and clicks to send messages.
In addition, analysts are still bullish on the FB share. Oppenheimer analyst Jason Helfstein notes that “user growth and engagement remain strong, and the focus on SME advertisers should drive continued higher revenue generation.” With that, he increased his target price for FB shares from $ 230 to $ 265.
Overall, Facebook is an excellent option for investors who want to take one of the major Internet stocks for 2020.
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After plunging at the end of 2019 on technical problems and bugs that weighed on sales growth, shares on Twitter (NYSE: TWTR) are pushing higher again.
In fact, the number of shares from year to year up to almost 22% and is run on user data. While TWTR missed estimates, other key figures gave investors reason to cheer. First, TWTR showed that it had more users at the end of 2019 than many expected. Two, the company also showed that sales growth accelerated again.
25 cents EPS missed estimates requiring 29 cents. However, sales rose to $ 1.01 billion compared to expectations of $ 996.7 million. Even better, the company’s revenue-generating daily active users (mDAU) exploded to 152 million compared to estimates for 147.5 million users.
In addition, analysts are bullish, including Lightshed Partners Richard Greenfield – who initiated a “buy” rating on the stock with a price target of $ 45:
“Revenue growth usually tracks user growth, as it takes time for advertisers to re-evaluate a platform’s reach,” Greenfield wrote. In Twitter’s most lucrative market, the United States, users are growing at a much faster rate than Facebook (FB) and Snapchat (SNAP), although the base is still a fraction of the two companies. We believe that this creates the ability to accelerate revenue growth meaningfully when Twitter reaches 2020. ”
Overall, TWTR is another member of the major Internet stocks in 2020.
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No list of the best internet stocks is complete without Amazon (NASDAQ: AMZN).
The AMZN stock continues to be an absolute beast. Since the year began, shares rose by a further 16% with no signs of declining; All thanks to a big winning team at the end of January. EPS of $ 6.47 was well above expectations of $ 4.03 per share, while revenue of $ 87.44 billion exceeded expectations of $ 86.02 billion.
In addition, Amazon Web Services was $ 9.95 billion, compared to estimates of $ 9.81 billion. Then it gave optimistic guidance, saying revenues could fall between $ 69 billion and $ 73 billion in the first quarter of 2020.
So it’s no wonder that Morgan Stanley just added AMZN to its “new money buying” list, noting that revenues and forecasts were “very strong” and not just “better than expected.” Analyst Brian Nowak says the AMZN stock may continue to climb on the heels of investment in its day-to-day shopping, “accelerating stock gains even faster than expected.”
With that said, Amazon clearly continues to thrive in a number of areas – making it one of the best choices investors can make when they want to add Internet stocks to their portfolio.
At the time of writing, Ian Cooper had no position in any of the above securities.