The new year could be another strong one for internet stocks, and BMO Capital Markets picked its favorites for investors looking to capitalize. Analyst Brian Pitz highlighted Amazon as the firm's top pick for 2025 and named Netflix , Trade Desk and Google parent Alphabet as other well-positioned names in the internet and interactive entertainment space heading forward.
'Our top Internet pick this year is Amazon, with a multi-year AI/IT workload shift towards AWS, given its leadership position across the full stack. Retail FCF unlock will continue, given +30% frequency growth and moderated Capex spending for ,' Pitz said in a note to clients earlier this month. He said Amazon's Warehousing and Distribution and Multi-Channel Fulfillment business 'unlocks fulfillment capabilities across social channels' and propels the company's offerings in off-platform shopping, which refers to customers buying products through platforms outside Amazon's specific platforms. The company's same-day and next-day delivery options add to its leadership in the e-commerce space, he said, noting that competitive pressure from Temu 'appears to be easing.' Amazon's artificial intelligence capabilities within its cloud business are another major catalyst, according to Pitz. He noted that Amazon Web Services offers a range of AI chips and foundational models for clients, including custom chips Inferentia and Trainium, in addition to Nvidia chips. Amazon shares are up roughly 45.5% this year. Alphabet's set to benefit next year as AI leads to search monetization improvements, according to Pitz. The company's had a controversial year and trailed some of its megacap peers but still saw steady revenue growth in its search ads and cloud businesses. The stock is up more than 37% year to date. 'We once again place GOOGL as a Top Pick as Search appears de-risked with better-than-expected Gemini adoption and fading regulatory overhang,' Pitz sai