Currently, U.S. equities like internet stocks are extending to the upside, as investors act like the coronavirus never happened.
This comes as the pandemic remains largely relegated to China, and Gilead (NASDAQ:GILD) works on an anti-viral treatment that is headed to human trials. Additionally, the end of the impeachment trial against President Donald Trump and word China will cut the tariff rate on $75 billion worth of U.S. imports by 50% is lifting spirits up and down the Street.
As a result, a number of internet stocks are perking up nicely.
Some of these companies have recently reported their earnings, and shareholders are feeling the positive and negative effects. However, these four names are worth a look if investors are looking to add some internet stocks to their portfolio.
With all of that in mind, let’s take a closer look.
Internet Stocks to Buy: Twitter (TWTR)
Twitter (NYSE:TWTR) just reported earnings that came up a little short of the consensus estimate. However, investors were impressed by the company’s monetizable daily active users (mDAU) growth of 21%. In turn, this rise helped boost the stock more than 13% that day.
Furthermore, this rise allowed TWTR stock to cross over the 200-day moving average and return to levels not seen since October. Additionally, the company reported a revenues increase of 10.8% year-over-year to just over $1 billion.
Twitter continues to play a central role in the run-up to the U.S. presidential election later this year. With that, the company announced in a blog post earlier this week that it will crack down on “synthetic and manipulated media” as fears over “deep fakes” continue to grow.
Overall, expect a wild ride higher in the months to come. This surge will arise as the campaign trail heats up, and Twitter’s role as the repository of hot takes and instant reporting grows more important. Therefore, now may be the time to add TWTR to your list of internet stocks.
Amazon (AMZN)
Amazon (NASDAQ:AMZN) is consolidating its push to new record highs, eclipsing the prior highs set in late 2018 and the summer of 2019. Investors are continuing to enjoy upward momentum from the strong quarterly results reported at the end of January, with North American sales up 22% and advertising revenue up 41% from the prior year.
In turn, RBC Capital analyst Mark Mahaney responded by raising his price target to $2,700 following the first top- and bottom-line beat by the company since the first quarter of 2018.
Additionally, Oppenheimer analyst Jason Helfstein also raised his price target thanks to better-than-expected profit margins. This move comes despite the investment spending necessary to roll out 1-day and same-day delivery options to users. Amazon also noted in their earning report that Prime subscriptions are up to an impressive 150 million.
With all of that in mind, AMZN stock is climbing higher and higher — making it a prime addition to the best internet stocks to buy.
Netflix (NFLX)
Shares of Netflix (NASDAQ:NFLX) stock have risen to test the prior high set back in July, returning to the upper end of a three-year consolation range.
The company reported better-than-expected earnings for the fourth quarter thanks to a doubling of operating income YoY. Subscriber numbers were a little soft, however, as the streaming wars intensify with Apple (NASDAQ:AAPL) and Disney (NYSE:DIS) pushing in on the turf it used to enjoy alone.
Based on their Q1 guidance for 2020, it seems that Netflix is expecting lower figures in revenue and global streaming memberships. However, analysts at Citigroup recently raised their outlook on the ongoing trend of consumer cord cutting.
In short, NFLX is just another great part of the internet stocks to add to your portfolio.
eBay (EBAY)
EBay (NASDAQ:EBAY) shares are surging higher, enjoying a 20% rise off of their recent low. This rise comes after Intercontinental Exchange (NYSE:ICE) offered to the buy the company for more than $30 billion.
However, ICE — the owner of the New York Stock Exchange — has seen its shares sink in the wake of the news as the deal doesn’t appear on the surface to contain a lot of synergies. Sure, both eBay and the NYSE involves bidding to match buyers and sellers. But buying stocks within microseconds is a lot different than buying trinkets and old movies on eBay.
So, it’s hard to see how the expertise crosses over.
The news came as a welcome change of subject for investors after Canaccord Genuity analyst Michael Graham dropped his target price for eBay stock at the end of January occurred because of worries about margin headwinds and the long-term outlook. Unfortunately, the good vibes were short lived as ICE backed away from the deal.
Still, this member of the internet stocks has some technical momentum now — which should bring in program buying and potentially attract buying interest from other strategic buyers.
As of this writing, William Roth did not hold any of the aforementioned securities.