Despite some fits and starts among some of the marquee names in the group, internet stocks have delivered for investors this year. Just look at the ALPS O’Shares Global Internet Giants ETF (OGIG), which is higher by 16.61% year-to-date as of July 7.
OGIG, which follows the O’Shares Global Internet Giants Index, is home to a broad portfolio of high-flying stocks. Some of those equities are richly valued and plenty of which are considered “glamorous” or “sexy.” Those attributes shouldn’t be deterrents for investors. And those traits aren’t necessarily headwinds to further upside for the ETF in the back half of 2025.
In fact, OGIG has multiple tailwinds. For example, it’s widely speculated that AppLovin (APP), one of OGIG’s smaller components, will soon be added to the S&P 500. Among the ETF’s more prominent names, analysts remain constructive on Facebook parent Meta Platforms (META).
“A consistent theme across our meetings as it relates to META was that it was among the best platform to target specific audiences/users, find the variations to drive conversions, and the platform doing so across formats,” said Citi Research of Meta in a late June report.
Two ‘A’s’ Could Boost OGIG, Too
Not all OGIG holdings have been setting the investing world ablaze this year. Google parent Alphabet (GOOGL) and Amazon (AMZN), which combine for more than 10% of the ETF’s weight, are dithering. Amazon is up just 1.68% since the start of the year. Alphabet, even with some recent momentum, is saddled with a year-to-date loss of 6.61%.
Some investors view generative AI applications, such as ChatGPT, as threats to Google’s dominant internet search business. But outright displacement isn’t likely. Additionally, Alphabet has other growth drivers that may be going overshadowed amid those AI concerns.
“For Alphabet, marketers were optimistic about YouTube ads and Google’s AI offerings like AI Overviews and Gemini, Citi said. The bank raised its revenue forecasts for the 2025 and 2026 fiscal years by 1.3% and 2.1%, respectively. It raised its target for the price to $203 from $200,” reported Barron’s, citing Citi.
With Prime Day commencing today, Amazon could be in focus over the near term, too. The company’s second-quarter earnings report on July 31 heightens the possibility the stock could be in for some short-term movement. It could be of the positive variety due to bullish Prime Day expectations. In a recent report, Bank of America analyst Justin Post said Prime Day could be a $21.4 billion gross revenue event this year, implying 60% year-over-year growth.
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