After a lackluster year, internet stocks and sector-related exchange traded funds look attractive with a better growth outlook.
FBN Securities’ Shebly Seyrafi believes internet names “should start to work this year,” reports Teresa Rivas for Barron’s.
Seyrafi argues taht while Google (NasdaqGS: GOOGL) may look extended over the short-term, the company’s valuations remain inexpensive. Additionally, Amazon (NasdaqGS: AMZN) appears attractive as well, given the company’s international profit growth and Amazon Web Services. He was also positive on social media names like Twitter (NasdaqGS: TWTR), LinkedIn (NYSE: LNKD) and Facebook (NasdaqGS: FB).
Investors interested in internet names can also consider a broad ETF to gain broad exposure to the space. For instance, the PowerShares NASDAQ Internet Portfolio (NasdaqGS: PNQI) includes a 8.8% tilt toward Amazon, about 16% in Google and 8% in Facebook. The First Trust Dow Jones Internet Index Fund (NYSEArca: FDN) has 8.2% in Amazon, 7.9% in Facebook, about 10% in Googlem 4.1% in LinkedIn and 4.0% in Twitter. [Investors Rotate Into Growth-Oriented Tech Stocks, ETFs]
FBN Securities is also positive on security stocks, like Palo Alto Networks (NasdaqGS: PANW), Fortinet (NasdaqGS: FTNT), CheckPoint (NasdaqGS: CHKP) and Fireye (NasdaqGS: FEYE).