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

Snap Has A Rumored Valuation Of $25 Billion. Could It Be $100 Billion In A Few Years?

Snap (Pending:SNAP) hopes its estimated 2017 sales of about $1 billion, up 150% from 2016, will be enough to justify a rumored $25 billion price tag. That valuation hinges on investors' confidence that it can increasingly monetize a fast-growing user base (check out Snap's key stats), following in the footsteps of rival Facebook while avoiding the pitfalls that plagued Twitter.

In the middle of 2009, Facebook (NASDAQ:FB) was on track for $1 billion in sales over the next 12 months, and three years later it went public at a valuation of $104 billion. Now that Snap is nearing the $1 billion mark, public investors who think it's the next Facebook may buy into Snap's $25 billion valuation on its potential for a 300% return over three years.

Source: http://seekingalpha.com/article/4042724-snap-rumored-valuation-25-billion-100-billion-years

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My Christmas Wish To All Fans Of This Blog

Tis the season for giving; Make a difference in someone's life this holiday season






I still remember vividly when as a little boy many years ago, how I used to look forward to this time of year with eager anticipation hoping that my good behaviour and excellent school grades would kindle jolly old Santa to deliver my fondest christmas wish down the chimney. It was fun for a while until my childhood idealism gradually gave into the realities of real family life when the true nature of who Santa was finally dawned on me.

The legend Papa Noel - Father Christmas as the jolly old fellow is fondly known in some parts of the world still lingers on and the charm and allure of his generoucity still enchants kids like it did me when I was still very impressionable. However, I am an adult now , and I still have wish lists that sometimes despite my best intentions and personal agency  these wishes are unrealized or deferred . Same reality I guess plays out for all of us I dare say .

Five years ago , I developed an appreciation for the stock market and the potential it had for making fabulous realized or speculative gains for those with knowledge, guts, insight and funds to venture into the arena. My inspiration for this blog came about during the Occupy Wall Street movement when thousands of  the disenfranchised worldwide , took to the streets in angry protest against the excesses of corporate greed that ushered in the last recession of 2008 . Public outrage came to a head when the Feds bailed out the banks whose very shenanigans caused innumerable families to lose their homes whose mortgages where tied up in dubious derivatives. I was at the rallies and saw the ire and rage against Wall Street and then something dawned on me. I realized that there was no way that the protesters could gain anything worthwhile concessions against the might of the wealthy one percent, who owned ninety percent of global wealth. I came up with idea that if you can't beat them, then join them. I was determined the to find out how to make money on Wall street so , I bought books watched youtube videos and embarked on a self tutoring effort that made me start this bog : www.stockpiqs.com which after five years , this labor of love has progressively become a trusted portal for actionable stock investment tips for investors worldwide. My efforts so far have been pro bono . I am convinced that there people out there who have profited from my postings and stock picks. If you are one of these or if you are just someone who is moved the spirit of the season , I would like to draw your attention to my christmas wish .

I HAVE LAUNCHED A GOFUNDME CAMPAIGN TO RAISE INVESTMENT FUNDS



Gone are the days of my childhood belief in Santa Clause; however , I believe wholeheartedly in the collective goodwill of mankind , that I witnessed time and time again summoned to champion worthy causes - big and small. The following link will take you to my gofundme dashboard, once there l hope the spirit of the season moves you to make a token donation :

https://funds.gofundme.com/dashboard/stockpiQsfund/customize/details

Please share this link and spread the word. We have come a long way together on this blog; I appreciate all your comments and words of encouragement.

Warm holiday greetings to all my fans worldwide from yours truly

In the spirit of the season , I would like to share are few stocks on my watchlist with you.

Health Insurance Innovations, Inc. NASDAQ: HIIQ - Free Report )
Genius Brands International Inc . (NASDAQ: GNUS )
KEMET Corporation ( KEM )

Hope Kalé Ewusi 

Facebook Added To Goldman's Focus List (FB)

Facebook Inc. (FB) had quite a week.

On Tuesday, the social media company’s shares reached a 52-week high of $129.94. A day later, Morgan Stanley (MS) reiterated its overweight rating of the stock and hiked its target price to $160 from $150. (See also: Morgan Stanley Raises Facebook Price Target).

Today, analysts at Goldman Sachs Group Holdings Inc. (GS) added the stock to their "Focus List" for the Information Technology space. According to Derek Bingham, analyst the firm, Facebook is an “asset-light tech disruptor” and a “long term share gainer” in the digital advertising sweepstakes.

The social media network’s engagement stats – users spend 30 minutes per day on its app – “offer a myriad of ancillary future opportunities in areas such as Messenger app, Facebook M (virtual assistant) and Facebook login.” Goldman’s assessment follows that of Morgan Stanley’s earlier this week. The latter’s analyst allayed concerns relating to advertising slowdown arguing that those concerns had led to Facebook trading below its median relative P/E. (See also: Can Facebook Hit $200 In Two Years?)

According to analysts at Bank of America, Facebook’s sales will rise by 53%, 24.5%, and 27.7% in 2016, 2017, and 2018 respectively. A large part of that rise will come from growth in user numbers. The social network already has 1.2 billion users on its social network. Its messenger app, which dominates the chat space, is expected to have 105.2 million users in the US this year. That’s twice as much as its nearest rival Snapchat. By 2020, 41.6% of the U.S. population or 139.2 million users will be on Facebook Messenger.

During its last earnings call, Facebook reported revenue growth of 59% year-over-year to $6.4 billion. The eponymous social media network remains the mainstay of revenues for its business. However, it is expanding into newer business areas and technologies, such as virtual reality and artificial intelligence. Over the next five years, the Menlo Park-based business has plans to build out its products from these acquisitions into “full ecosystems, developers and business.”

By Rakesh Sharma

Source: http://www.investopedia.com/news/facebook-added-goldmans-focus-list-fb/

Facebook Is Poised for a Breakout -- Here's How to Trade It

Shares of Facebook  ( FB) appear to be on the verge of a powerful breakout. The stock closed Monday with a healthy 2% gain with the help of a nice jump in volume.

 

This impressive action has pushed FB to fresh July highs and sets the stage for a Once the $121 area is convincingly taken out, the stock has plenty of room to run higher.

 

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

 

 

Back in late April, Facebook exploded to the upside following its first-quarter earnings report. The stock surged over 7% on the positive news but was unable to make any further headway. Two weeks later, after just barely reaching a new monthly high, an ominous top was beginning to form. By the end of May, after just over four weeks of dull post earnings action, it was becoming obvious that Facebook was completely exhausted and would need a deep pullback before getting back on track.

 

Facebook drifted lower through the early part of June, but the downside remained well-contained despite the ominous April/May top. It took the Brexit selling wave to finally push FB down to a major support zone. As shares reached the April 28 earnings breakout gap, which marked the lower band of the support zone, the stock had pulled back 10%. After the dust cleared on the morning of April 28, patient investors where taking advantage of the low-risk entry opportunity, quickly reversing the selloff in the process.

 

At the start of last week, Facebook had rallied 10% off the Brexit low. The stock spent the entire week consolidating the gains as it held in a narrow range just above the 50-day moving average. On Monday, Facebook broke out of this healthy pattern and is now set up well for a new bull leg.

 

In the near term, Facebook investors should take a much more positive view of the stock heading into next week's earnings report. The stock should be considered a low-risk buy near current levels. A close back below $116 would take out last week's low and would reverse Monday's breakout. On the upside, once past the April/May highs, Facebook has plenty of room to run. The stock could travel quite a ways before re-entering overbought status.

 

Of note, Facebook is scheduled to report second-quarter results July 27 after the close.

 

From a fundamental perspective, Facebook is a holding in Jim Cramer's Action Alerts PLUS charitable portfolio. Cramer and Research Director Jack Mohr wrote on Monday that they sold a portion of their Facebook position, which was up about 85% from their purchase price. "The move was driven not by any change in our fundamental thesis, but rather to right-size our exposure and avoid the temptation of succumbing to greed following a parabolic run," they wrote. They added:

We want to make it clear that Facebook remains a core holding and among our favorite long-term investments. The company knows how to execute, understands what its consumers want and has proven adept at growing consistently, rapidly and profitably. The stock's tremendous rally reflects much of these capabilities, however, with expectations already rising steadily ahead of the print as prominent sell-side analysts raise their estimates ahead of next Wednesday's earnings release. We expect the name to emerge as more of a battleground in the near term and prefer the certainty of some tangible profits near term over the risk of event-driven volatility. We leave our $145 price target unchanged.

By Gary Morrow

Source: https://www.thestreet.com/story/13644001/1/facebook-is-poised-for-a-breakout-here-s-how-to-trade-it.html

How one trader plans to make millions on Facebook

With Facebook earnings around the corner, one big trader has an intriguing strategy for playing the tech giant.

In one of Monday's biggest options transactions, a trader appears to have sold 17,000 Facebook 100-strike puts expiring on April 29 for $1 each (in round numbers).

This could lead to a few positive turns of events. First of all, the trader took in $1.7 million for selling the puts. If Facebook shares manage to close above $100 at month's end, the seller will get to keep that entire amount. That's about 9 percent below Monday's closing price.

If, on the other hand, Facebook closes the month below $100, the trader will be forced to buy the stock for that price, even if it is trading well below that level. At the $99 level, once the extra amount the trader will have to pay for the stock dominates the $1 options premium, the trade will result in a loss.

However, this is where the second potential positive outcome comes in.

If Facebook falls sharply after its scheduled April 27 earnings report, and then rebounds nicely off of its lows, the trader will sandwich one negative event — being forced to buy the stock at above-market prices — between two positive events — receiving a premium for selling the put, and riding the stock higher from the $100 level.

This is why selling puts is sometimes described as being "paid to wait." That is, if this trader is 100 percent certain that he or she would be willing to pay $100 for Facebook shares at the end of April, the trader can go ahead and sell that put, thereby monetizing that willingness.

"It's a very shrewd trade," commented Dennis Davitt, an options strategist at Harvest Volatility Management, in a Monday "Trading Nation" segment.

Davitt points out that the volatility implied by the options price is three times higher than the volatility the stock has realized recently, which could be a sign that the option is too expensive — and hence ripe for the selling.

On the other hand, if Facebook falls as dramatically off of Q1 earnings as it rose off of its Q4 report, this trader could be out a good chunk of change. Each dollar Facebook shares drop below $99 will theoretically cost the trader $1.7 million.

By Alex Rosenberg

Source: http://www.cnbc.com/2016/04/18/how-one-trader-plans-to-make-millions-on-facebook.html

7 Companies That Are Doing Wonders With AI

Artificial Intelligence - or AI - is far from science fiction. For better or worse, we've already taken big steps toward creating computers that think independently.

Source: Atomic Taco via Flickr

You may be surprised to find out that along with academics and innovative startups, some of the world's biggest technology companies are on the forefront of the research and development that is driving the race to true artificial intelligence.

Will computers ever pass the Turing Test, fooling a human into thinking they're conversing with another human over an extended period of time? That will be one of the key indicators that AI has reached the tipping point, heading into the uncharted waters of true, self-aware artificial intelligence.

Most of us interact with computers that make decisions for us every day, at least in the form of recommendations. Chances are you might use a navigation app on your smartphone that calculates the best route to the restaurant a virtual assistant like Apple Inc. 's ( AAPL ) Siri has suggested you would enjoy.

These features are all powered by a form of artificial intelligence.

Taking on an AT-ST in Electronic Arts Inc 's ( EA ) Star Wars Battlefront ? You're going up against the game's AI.

• 5 Beaten Down Tech Stocks To Consider - Now

We're still not at the point of AI where computers can "think" on the level of a human or become self-aware, but every year efforts get closer. Here are seven of the companies that are working on developing AI that could eventually be capable of passing the Turing Test.

Companies Doing Wonders With AI: International Business Machines Corp. (IBM)

Source: Open Grid Scheduler Via Flickr

One of the most visible technology companies when it comes to AI is also one of the oldest: International Business Machines Corp. ( IBM ).

IBM's research into artificial intelligence goes back to the 1950s , and for many years, Watson - its Jeopardy -winning super computer - has been the most public face of AI.

Deep Blue, another IBM super computer, gained fame in 1997 for defeating the world chess champion.

IBM currently markets Watson as a platform that leverages machine learning and natural language processing to analyze large quantities of unstructured data for customers.

Companies Doing Wonders With AI: Alphabet Inc (GOOG, GOOGL)

Source: Open Grid Scheduler Via Flickr

Alphabet Inc 's ( GOOG , GOOGL ) Google is into artificial intelligence in a big way. So big, in fact, the company established its own artificial intelligence ethics board to oversee its efforts.

In 2014, the company bought what was probably the world's best known AI company -DeepMind - to further its progress in artificial intelligence development.

Primarily a software and services company, pushing the capabilities of AI is critical to many of Google's ventures. The technology is central to helping prevent its self-driving car from hitting pedestrians, ensuring Android's Google Now virtual assistant is keeping on top of your wedding anniversary and fine-tuning your Google Search results.

• MVP Portfolio: The 6 Best Stocks You Can Buy Now

Like IBM, Google also has some fun with artificial intelligence. In March, its AlphaGo AI beat the reigning world Go champion four games to one. AlphaGo is extremely advanced AI technology that learns from its mistakes and from the techniques of its opponents and represents a big step forward in the race to develop true machine intelligence.

Companies Doing Wonders With AI: Apple Inc. (AAPL)

Source: iphonedigital via Flickr

Apple may be primarily focused on consumer electronics - computers, smartphones, tablets - and streaming media, but it's also actively exploring artificial intelligence.

Siri - the virtual assistant found in iOS, watchOS and tvOS - is at the forefront of Apple's AI pursuits. The smarter Siri can be made, the more effective it is, whether that takes the form of anticipating when you should leave for an appointment or interpreting what you actually mean when you ask a question.

AI is also key to features like listening recommendations for Apple Music.

What may be Apple's biggest push into artificial intelligence is currently deep under wraps. The company is suspected to be working on a self-driving car, and AI would play a big part of that effort.

If there was any doubt that Apple was interested in AI, the fact that it has acquired a number of AI-related companies lately, including Vocal IQ , Perceptio and most recently, Emotient should put that to rest.

Companies Doing Wonders With AI: Sentient Technologies

Source: Sentient Technologies

U.S.-based Sentient Technologies employs the world's largest and most powerful artificial intelligence network.

How powerful? Sentient makes use of idle PCs around the world, amassing a network of several million PC cores across more than 4,000 sites.

The team at Sentient was involved in the development of Apple's Siri. Since then, the company has developed an AI stock trading system, worked with MIT to develop an AI nurse that combats the deadly bacterial infection sepsis based on real-time analysis of patient vital signs and released Sentient Aware for e-Commerce, an "AI-powered online shopping associate."

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Sentient Technologies is also currently the most funded AI company, with $143 million raised to date , so expect it to continue being at the cutting edge as the importance of artificial intelligence grows.

Companies Doing Wonders With AI: Facebook Inc (FB)

Source: SilverIsdead Via Flickr

Does Facebook Inc ( FB ) care about artificial intelligence? This quote from the company's AI research page should send a very clear message:

"We seek to understand intelligence and make intelligent machines. How will we accomplish all this? By building the best AI lab in the world."

Facebook says that AI is one of the three keys to its growth (along with virtual reality and devices to deploy internet access to remote areas of the world) over the next decade.

The recently announced chatbots for Facebook Messenger are a sign of what's to come.

Automated customer service tools that can employ Facebook's AI know-how to engage customers using interactive communication, chatbots represent a leap forward in the practical use of artificial intelligence. They have the potential to let businesses using Facebook Messenger replace more expensive, frontline human customer service representatives.

As the technology improves, it will eventually be indistinguishable from the real thing.

Companies Doing Wonders With AI: Microsoft Corporation (MSFT)

Source: Mike Mozart Via Flickr

Microsoft Corporation ( MSFT ) has been in the headlines lately because of its latest foray into artificial intelligence. Unfortunately, Tay the AI-powered Twitter Inc ( TWTR ) chatbot, pulled an epic faceplant once unleashed, but the race to artificial intelligence isn't all winning game shows and chess matches.

Microsoft is invested in AI research in a big way and it has implications for many facets of its business.

Software that learns from data improves Bing search results and makes the Microsoft Band's health applications more accurate. It helps Xbox One games be more challenging and makes Cortana - Windows' virtual assistant - become an increasingly important facet of the Windows PC and mobile experience.

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And one day, it will help chatbots like Tay remain composed despite internet trolls, and may even power the triumphant return of Clippy, the infamous Microsoft Office assistant.

Companies Doing Wonders With AI: Amazon.com, Inc. (AMZN)

Source: C_osett via Flickr

Finally, it should come as no surprise that Amazon.com, Inc. ( AMZN ) is one of the companies helping to push artificial intelligence to the next level.

Behind the scenes, one of the keys to AI is the raw processing power needed to collect, analyze, learn from and makes decisions based on huge amounts of data. Not many companies have access to this kind of horsepower, but Amazon Web Services leverages the company's massive investment in cloud computing to offer Amazon Machine Learning .

You can bet Amazon Machine Learning is custom tailoring the presentation of products on every visit you make to amazon.com and directing the bot that sends you those recommendation e-mails.

Amazon is also active on the virtual assistant front. Although it was late to the game compared to Siri, Cortana and Google Now and lacks a native smartphone platform to boost its popularity, Amazon's Alexa has proven to be a surprise hit.

Amazon's Echo speaker is Alexa-powered, providing an AI in the living room that can search for music, provide the weather forecast, order products online and control smart home gear, including a Nest thermostat.

Alexa is also involved in perhaps the last area you'd expect an Amazon service to be found: automobiles. At CES 2016, Ford Motor Company ( F ) announced plans that would see Echo owners be able to use Alexa to interact with Ford vehicles .

Between 2011 and 2014, over $2 billion was invested in companies focusing on technology and services related to artificial intelligence, while over 100 AI-related companies were part of a frenzy of mergers and acquisitions involving tech giants like Apple, Google and Amazon. And that pace is only accelerating.

In other words, get ready for AI - it's the future.

By: InvestorPlace Media

Source:http://www.nasdaq.com/article/7-companies-that-are-doing-wonders-with-ai-cm606660