By Senad Karaahmetovic
E-commerce giant Amazon.com (NASDAQ:AMZN) heads Goldman Sachs’ Top Picks list for the internet sector.
The stock is “solidly our top pick for the remainder of 2023 from current trading levels,” said analysts in today's note.
The list also includes Uber (NYSE:UBER), despite shares trading almost 38% higher year-to-date.
“The company produced progress on profit initiatives with stable end demand trends & overall industry competitive intensity,” they wrote in a note.
Finally, the analysts also urged Goldman’s clients to own Meta Platforms Inc (NASDAQ:META) and Alphabet (NASDAQ:GOOGL).
“We see more favorable shorter term risk/reward for META in a dual element of rising business momentum and intense focus on efficiencies at META which is likely to sustain an upward EPS revision cycle. In the short term, GOOGL is likely to see volatile stock trading due to the mixture of increased investor focus on generative AI and on the cyclical slowdown in search and brand advertising against tough revenue comps,” they added.
Overall, they highlighted Amazon and Google (NASDAQ:GOOGL) as go-to Internet stocks to own in 2023.
“We would place GOOGL along AMZN from current levels in terms of risk/reward as we remain convinced that GOOGL is among the very best companies positioned for future computing cycles tied to AI/ML, augmented reality & quantum computing,” the analysts concluded.
Amazon shares trade about 1% higher on the day while Google stock is down 0.7%.