Keep an eye on Facebook and Amazon stocks, says Wall Street analysts
According to Wall Street analysts, 2020 is going to be a rewarding year for internet stocks.
As reported by CNBC, the S&P 500 index marked the end of the year 2019 by surging 28.9% due to FAANG stocks. FAANG stocks consist of Facebook, Apple, Amazon, Netflix and Google – the top internet names. Facebook ended 2019 up 56.6% while Amazon jumped 23%. As a result, it positively affected S&P 500.
Further, the analysts informed clients to keep an eye on Facebook and Amazon stocks as there’s more to come from them as well as companies such as Shopify, Zillow, Alphabet, Netflix, and Alibaba.
“Third-party sellers posted record-breaking results, as worldwide unit sales grew at a double-digit pace from the prior year and surpassed a billion items sold,” analyst Jim Kelleher stated.
According to the early data, “Amazon ecosystem displayed strength across numerous metrics,” he said.
“We believe that AMZN warrants long-term accumulation in most equity accounts,” Kelleher further said.
2019 was a very notable year for streaming as it marked the debut of Disney+ and Apple TV+.
However, while the firm said that the competition among streaming services for viewers is real, it believes Netflix could succeed in accelerating subscriber additions this year.
“In the U.S., Netflix in 2020 will be comping against a material price increase and a dramatic slowdown in its marketing spend, and Netflix should benefit from an accelerating decline in Linear Paid TV Subs,” analyst Mark Mahaney said.