These are the 5 internet stocks you should buy right now, according to Citi

Facebook ranked as No. 1 internet stock by bank, which ranks only Twitter as a sell among 16 companies focused on web

Analysts at Citigroup released a ranking of internet stocks Wednesday that investors may want to consider if they’re looking to make money off companies underpinning the vast web.The brokerage has 16 internet stocks in its coverage area, ranging from Facebook Inc. FB, -0.09%   , its top pick, to Twitter Inc. TWTR, -0.13%   , the only stock it rates as a sell.

Many major tech stocks are not included because internet is not the companies’ main focus. For instance, Apple Inc. AAPL, -0.23%   is considered a hardware company even though it continues to expand its online software and services category.

Citi breaks its coverage of these stocks into three main areas: internet media, e-commerce and online travel.

Here are Citi’s top five internet stock picks in order:

Facebook: The social media giant has “significant opportunity in video, Instagram, messaging” and other areas of business, according to Citi. Growth is expected to slow in the near term as Facebook reduces ad load, but that is widely expected. The deceleration is viewed as just a hiccup in the trajectory of an otherwise high-growth company.

Facebook is also still in early stages of monetizing Instagram, its popular photo-sharing app, and messaging app WhatsApp. Last quarter, Facebook reported a 51% increase in revenue to $8.81 billion as it continued to grow mobile users and sell mobile ads. Last summer, it launched Instagram Stories, a feature that mirrors a popular offering from Snapchat, whose parent company, Snap Inc.SNAP, -0.44%  , recently went public in the largest U.S. tech IPO since Facebook’s.

Also Read: Snap stock suffers first major selloff since going public

Citi has a buy rating and $165 12-month price target on the stock. Shares of Facebook gained 0.3% to $137.69 on Wednesday and have increased nearly 16% in the past three months and 30% in the past year, outperforming the S&P 500 index SPX, +0.08%  , which is up 5.5% in the past three months and 20% in the past year.

Alphabet: The Google parent has to tackle increased traffic acquisition costs and decelerating search revenue as it faces new competition in search from companies such as Facebook and Amazon.com Inc. But the company’s mobile search and cloud businesses, as well as YouTube, which will soon launch a subscription-based streaming TV service, are viewed as attractive opportunities overshadowing the problem areas.

Last quarter, Google’s profit margins slipped to 76% from 78% in the year-earlier period. However Citi said “focusing on margin compression misses the big picture.”

The brokerage ranks Alphabet Inc. GOOGL, +0.49% GOOG, +0.40%  a buy with a $985 price target on the stock. Shares of Google have gained 7.5% in the past three months and 20% in the past year, virtually in line with the S&P 500. They increased 0.5% to $855.76 on Wednesday.

Amazon: Amazon’s AMZN, +0.04%  AWS cloud business, dominance of e-commerce, growing influence over the logistics that have long been controlled by United Parcel Service Inc. UPS, +0.16%   and FedEx Corp. FDX, -0.63%   , and its fast-growing media and Prime subscription businesses are all seen as major positives that may propel the stock.

While investments the company makes in original content and other areas related to its expansion, as well as price cuts tied to AWS, may pressure margins near-term, Citi said top-line trends at AWS and retail remain strong. “Expect long-term payoff from these investments, and believe there is potential for material improvement in margins and EPS over the long-term,” the bank said.

Read Also: These stocks are outrunning the bull market with quadruple-digit gains

Citi has a buy rating and $960 target on Amazon stock. Shares of Amazon gained 0.5% to $850.58 on Wednesday and have increased 11% in the past three months and nearly 52% in the past year, outperforming the S&P 500.

Priceline: The travel bookings site is the “clear market leader” in hotel bookings, which Citi said is “the most attractive online travel sector.” Last quarter, Priceline Group Inc.’s PCLN, +0.20%  revenue jumped more than 17% year-over-year, which it attributed to strong growth in hotel revenue. The company did provide an earnings per share outlook for the current quarter that fell short of expectations, but investors seemed to have shrugged that off as Priceline has a history of under-promising and over-delivering.

Will Snap reinvigorate the IPO market?

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Snap went public in the largest tech IPO in the U.S. since Alibaba. Yet some investors question the company's long-term health and effect on the IPO market.

The company’s ability to diversify beyond the trip-planning platform, which mirrors that of rivals such as Expedia Inc. EXPE, +0.14%  , is also seen as a noteworthy competitive edge. Citi said the company has a positive record of executing on new initiatives, and may, therefore have success with some of its newer business lines, such as virtual reality and business travel. Last year, Priceline launched a mobile app called Booking Experiences that helps travelers plan their trips with previews of destinations and pop-up notifications providing information when travelers walk past attractions. Augmented reality will enable the company to do this more seamlessly, while virtual reality could help potential travelers explore places before they book.

Citi has a buy rating and $1,880 price target on the stock. Shares of Priceline gained 0.7% to $1,748.29 in afternoon trade and have climbed 13% in the past three months and more than 36% in the past year, outperforming the S&P 500.

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EBay: This is an interesting pick because of the intense competition it faces against much stronger and larger rival Amazon. However, Citi touts eBay Inc.’sEBAY, -0.42%  “modestly improving growth,” potential for “significant capital returns” and value stemming from strategic mergers and acquisitions as reasons why it’s a fairly-valued stock that’s worth buying.

In January, eBay posted a 3.1% increase in revenue for the key holiday-shopping period, marking its fourth straight quarter of top-line growth. The company may not be as big as Amazon, but it is well-positioned for the continued shift to online and mobile shopping, which is increasingly weighing on traditional brick-and-mortar retail companies.

It’s also a much cheaper stock. Citi has a buy rating and $36 price target on eBay. Shares of the online marketplace fell 0.3% to $33.37 on Wednesday and have gained 13.4% in the past three months and 38.6% in the past year, outperforming the S&P 500.

Yahoo Inc. YHOO, -0.09%   and GrubHub Inc. GRUB, +0.60%   are the only two stocks in Citi’s coverage of internet stocks with buy ratings that did not make its top-five list. Verizon Communications Inc.’s VZ, +0.24%  planned purchase of Yahoo will provide cash to shareholders and remove some of the complexity in the business, said Citi, which rates Yahoo a buy with a $49 target. GrubHub is investing in a number of near-term initiatives that could support long-term growth, said the analysts, which have a buy rating and $44 target on the stock.

By Jennifer Booton

Source: http://www.marketwatch.com/story/these-are-the-5-internet-stocks-you-should-buy-right-now-according-to-citi-2017-03-08

Amazon offers $8.62 off orders of $50 or more today

Heads up, bargain hunters: It's a good day for an Amazon haul.

For today only, the Web giant is offering $8.62 off orders of $50 or more. To take advantage of the discount, just enter the promo code "BIGTHANKS" when you check out. Click banner on your left  for easy access

The offer expires tonight at 11:59 p.m. PT, so make some time to place your order over $50 today. There are some exclusions: the offer only applies to products sold by Amazon.com, and the discount doesn't apply to digital content; video games; Amazon gift cards; or orders placed via Alexa, Prime Now, Amazon Restaurants, or any mobile app other than Amazon Shopping.

A discount of $8.62 might seem super random, but Amazon has a good reason for that seemingly arbitrary figure. The company ranked No. 1 in the annual Harris Corporate Reputation Poll, earning a score of 86.27 percent, so it's offering the discount as a thank you to customers.

"We're energized by this recognition and will keep working and inventing on your behalf," Amazon chief Jeff Bezos said in a statement. "These accolades are a direct result of the whole team's obsession over customers, pioneering spirit, commitment to operational excellence and willingness to lean into bold bets."

Harris Poll surveyed more than 23,000 people across the US on various aspects of corporate reputation, covering everything from products and services to financial performance and social responsibility. Amazon rated "excellent" in all areas, earning a record-high score for the 18-year survey.

Amazon ranked above companies like Wegmans (which came in No. 2 with a score of 85.41), Publix Super Markets (82.78), Johnson & Johnson (82.57), Apple (82.07), and UPS (82.05). This is Amazon's second consecutive year at No. 1 and ninth straight year in the top 10.

For more details of the sale, head here.

For AMAZON BEST SELLERS click below :

https://www.amazon.com/Best-Sellers/zgbs/?&tag=shoprite0597-20&camp=222345&creative=494369&linkCode=pf4&adid=06GDBKCN1KW4ZG1BRAZP&

Source:http://www.cnbc.com/

Bull of the Day: Alibaba Group (BABA)

Alibaba Group Holdings (BABA - Free Report) reported strong December quarter numbers on January 24 with top and bottom line beats and a whopping 54% year-over-year growth in sales.

Wall Street analysts liked that growth and the outlook going forward enough to raise estimates 23% for the current fiscal year (ending in March) from $2.15 to $2.65. And the next fiscal year also moves up 23% from $2.56 to $3.16.

Alibaba CEO Daniel Zhang highlighted "We are driving the age of 'New Retail,' which leverages big data and innovation to provide a seamless online and offline experience for nearly half a billion mobile monthly active users. This retail transformation will make it even easier and more efficient for brands and retailers to engage with these consumers anywhere, anytime."

After the conference call, my colleague Ryan McQueeney explained "Alibaba further detailed its 'New Retail' concept, saying that it will help the company tap into the entirety of China’s $4.8 trillion retail sector by breaking down the distinction between online and offline commerce. To that end, Alibaba has started partnering with several different brick-and-mortar retailers.

Wall Street Goes Gaga Over BABA

For this Bull of the Day, I thought it would be interesting to also hear from the analysts whose upward revisions to growth estimates have once again made the stock a Zacks #1 Rank. Here are 5 viewpoints on the Amazon (AMZN - Free Report) of China...

RBC Capital maintained their Outperform rating on Alibaba and kept their price target of $120 citing strong China retail sales growth and the new Cloud Computing division reaching a $1 billion revenue run rate.

Goldman Sachs analyst Piyush Mubayi raised their FY17-FY19 revenue estimates by 3-4% on better growth outlook for China online advertising and International retail, and raised EPS estimates by 5-7% due to higher operating leverage. The firm reiterated their Conviction List-Buy rating on the stock and moved their price target from $128 to $135.

Deutsche Bank raised its price target from $140 to $148 noting that the company attributed strong results to solid consumer usage, merchant spend, and impressive user growth, with mobile MAU (monthly active users) reaching 493 million, representing 25% growth. Here were some other important comments from their report...

"Online marketing services again expanded robustly, by 47%, mainly driven by paid click growth. Commission revenue accelerated to 32% yoy, reflecting Tmall GMV growth recovery. Core e-commerce margin saw continued expansion to 64%, despite investment in globalization, FMCG & rural Taobao.

"The company lifted FY17 full year guide from 48% to 53%. The new guide should be easy to achieve given BABA’s strong momentum. Alibaba's "New Retail" strategy meanwhile seeks to integrate more offline retailers (e.g. Intime) with integrated inventory, membership and services to serve both users and merchants more efficiently. Monetization should thus increase long term."

Morgan Stanley raised its price target on BABA shares from $130 to $140 and maintained their Overweight rating.

Analyst Grace Chen noted "Alibaba raised F17 sales guidance from 48% YoY growth to 53% YoY after the stronger than expected F3Q17 results. It is transforming from an eCommerce to a marketing platform, which enables it to capture more merchant spending, expanding from distribution to marketing services. For F18, the company will focus on globalization, rural China, and cloud/big data to propel
growth."

SunTrust analysts discussed 3 key points in their review of the quarter: 1) Core and organic revenue growth accelerated driven by engagement (clicks). FY revenue guidance increased to 53% YoY growth vs. 48% prior. 2) Core EBITA profitability of 64% was inline/better while investments in Lazada, Tmall Supermarket, and "New Retail" continue; and 3) Outlook for improved Cloud and Digital profitability remains positive for FY’18.

The firm reiterated their Buy rating based on strong core growth and profitability, prudent growth investments, and the portfolio of assets. Their $125 2017 price target implies a sub-25X multiple for calendar year 2018 EPS.

by Kevin Cook

Source: https://www.zacks.com/commentary/102865/bull-of-the-day-alibaba-group-baba

FedEx Stock Is Flying

The Transportation Index is trading at new 2016 highs on Monday, with help from FedEx.

Shares of transport giant FedEx (FDX) are in full breakout mode on Monday. The stock is up over 3% as it extends the rally off last week's low. FedEx is working on a four-day winning streak and is breaking above a significant overhead trendline. 

FedEx bulls should be very encouraged by this powerful breakout move. 

STOCKS TO BUY: TheStreet Quant Ratings has identified a handful of stocks with serious upside potential in the next 12-months. Learn more.

Back on Sept. 21, FedEx exploded to the upside following its first-quarter earningsreport. The stock opened that session with a huge breakout gap as volume surged. FedEx finished with a 6.9% gain, taking out heavy resistance near the early 2016 highs. The stock drifted higher over the next week before running out of momentum just above $177.  By the end of the month, it was clear FedEx would need a healthy consolidation before the rally could resume. During his seven-week process, the stock held key support near the old highs.

As Monday's breakout move gains steam, the $169 area could prove to be a major support zone.

In the near term, FedEx investors should consider the stock a buy on weakness. The stock has left behind a fresh support zone between the September and October highs. This important zone runs between $177.50 and $176.35. A drift back down to this area would offer a very low risk entry for patient bulls. 

On the upside, FedEx is headed for a retest of its all-time high of $185.20 set back in June of last year.   A pullback from the this heavy supply zone is very likely.

Click here to see the below chart in a new window.

READ MORE: 3 ETFs to Buy if Amazon Is Intent on Destroying UPS and FedEx

By Gary Morrow 

Source: https://www.thestreet.com/story/13883829/1/fedex-stock-is-flying.html

Amazon due for another record quarter: what to expect

Amazon’s AWS and e-commerce businesses both on track for double-digit growth

Amazon.com Inc. is expected to report another solid financial period when it reports third-quarter earnings after the market closes Thursday, fueled by stronger e-commerce sales and increased appetite for its cloud-computing service, Amazon Web Services.

Total Amazon AMZN, -0.26%  revenue is expected to rise by 29% year-over-year, with U.S. e-commerce sales increasing by 16% and AWS revenues rising by 52%, according to Cantor Fitzgerald, which recently raised its price target on Amazon shares to $1,000.

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“Our checks show healthy double-digit pace of growth in e-commerce and we view Amazon as one of the prime beneficiaries of such a trend,” Cantor Fitzgerald analyst Youssef Squali said in a note to clients Monday.

Here’s what to expect:

Earnings: Sell-side analysts surveyed by FactSet expect Amazon to report a profit of 78 cents a share, compared with 17 cents in the year-earlier period. Contributors to Estimize, a software platform that uses crowdsourcing from hedge-fund executives, brokerages and buy-side analysts to predict earnings, expect Amazon to report a dollar a share. The company topped both consensus estimates by a wide margin in the first two quarters of this fiscal year after missing Wall Street’s guidance by roughly 46% in the final quarter of fiscal 2015.

“After years of uneven profits, Amazon has begun to deliver substantial earnings,” said Wedbush analyst Michael Pachter, who has an outperform rating and $900 price target on the stock.

Revenue: The company is expected to report revenue of $32.689 billion, compared with $23.2 billion in the year-earlier period, according to the FactSet consensus estimate. Estimize has Amazon’s revenue coming in slightly lower, around $32.250 billion. Amazon beat both guidance ranges in its past two fiscal quarters.

See also: Louis Vuitton’s luxury goods are not available on Amazon – and that’s smart

Stock reaction: Shares of Amazon have outperformed the S&P 500 both in the past three months and the past year. The stock has risen nearly 12% in the three months since its last earnings report, compared with a decline of 1.1% for the index. They’re up 39% from a year ago, compared with a 3.6% increase for the S&P 500. On Monday, the stock traded 1.7% higher to $833.27. The average rating on the stock is the equivalent to buy, while the average price target on shares is $881.13.

What to watch for: Coupled together, Amazon’s ballooning e-commerce sales and cloud services have positioned the company for sustained and substantial earnings growth, said Pachter.

The company’s North American e-commerce same-store sales have started to turn around after several months of declines, rising 10.4% in August and 11.8% in September, compared with growth of just 6.4% in July, according to Nomura analyst Anthony DiClemente, citing ChannelAdvisor data.

“While below Amazon’s historical average, we believe the slower growth is substantially offset by ramping growth in total third-party sellers due to ongoing success of the Fulfillment by Amazon program,” said DiClemente, who rates Amazon shares a buy with a $950 price
target.