4 Outperforming Internet Stocks to Buy Now

4 Outperforming Internet Stocks to Buy Now

Posted On September 9, 2020 1:53 pm

Out of all the major sectors, technology has been the strongest. This is evident by the Nasdaq’s 71% gain from the March lows. Additionally, the Nasdaq exceeded its pre-coronavirus highs in June, while the S&P 500 did so in August, and the Russell 2000 has yet to do so.

Within tech, one of the strongest groups has been Internet stocks. The Invesco Nasdaq Internet ETF’s (PNQI) year-to-date gain of 45.6% is a testament to the its strong price momentum. In contrast, the Nasdaq is up 27% YTD, and the S&P 500 is 7.5% higher YTD.

Facebook, Inc. (FB), NetEase Inc. (NTES), Spotify Technology S.A. (SPOT), and Zillow Group Inc. (ZG) are primed to continue their outperformance in the coming months.

Facebook, Inc. (FB)

Rising the industry boom, this social networking giant has returned 18.5% over the past three months and 37.8% year-to-date. FB’s second-quarter earnings report reflects how the pandemic has helped it thrive. The company’s net income increased by 98%, income from operations increased by 29%, and total revenue increased by 11% year-over-year during the quarter. The stock has gained about 70% since its March lows. Thirty-seven out of forty-nine Wall Street analysts have a Strong Buy rating on FB.

During this period of social distancing, Instagram, Whatsapp, and Messenger are being heavily used to stay connected. FB recently made it possible for users to transfer their Facebook photos and videos to two additional services namely Dropbox (DBX) and Koofr using the new data portability tool.

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