Jefferies sees internet stocks making a comeback in 2022, with up to 40% upside

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Jefferies sees internet stocks making a comeback in 2022

The Wall Street firm’s internet picks fell 5 per cent in 2021 — a particularly disappointing performance considering that both the S&P 500 and the Nasdaq gained more than 20% for the year.

And if you’ve only got a small bit of cash to invest with, and can’t afford some of these blue-chip stock prices, considerThis advertisement has not loaded yet, but your article continues below.Facebook’s name change to Meta Platforms in October is one of the big reasons why everyone seems to be. But its bread-and-butter business — social media — is still firing on all cylinders.

Meta is “one of the best fundamental stories in online advertising, producing consistent best-in-class ROI for marketers,” writes Jefferies.Article content“Oculus rose to the No. 1 most downloaded app in the App Store on Christmas Day, providing a clear indication that VR adoption is more mainstream than previously thought,” says the investment bank.As the parent company of Google, Alphabet is already an internet behemoth, commanding a market cap of over US$1.8 trillion.

In Q3 of 2021, Alphabet earned US$65.1 billion in revenue, representing a 41 per cent increase year over year. Jefferies says that Trade Desk is the best pure-play stock to capitalize on the shift to programmatic advertising, pointing to its “deep relationships and a scalable business model.”

 

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