Welcome to Extreme Investor Network, where we provide you with cutting-edge insights and trends in the world of investing. Today, we are diving into Goldman Sachs’ latest internet stock picks that have caught their attention following the second-quarter earnings season.
Goldman Sachs identified key themes that drove the earnings season, such as the return on invested capital (ROIC) for stocks tied to artificial intelligence spending and the health of U.S. consumer spending. As the visibility of profits on AI-related investment remains uncertain and online consumer spending shifts towards necessities, Goldman has highlighted a selection of stocks they believe are best positioned to navigate this evolving investment landscape.
One of the top picks from Goldman’s list is e-commerce giant Amazon. Despite caution from Amazon about consumer spending patterns, the company is leveraging its scale and platform to capitalize on changing spending behaviors. With a focus on everyday essentials and high-ticket items, Amazon continues to grow, positioning itself for market share gains in the changing economy. Goldman’s price target of $230 per share implies a 29% upside from the current price, highlighting the potential for strong returns.
Another standout pick from Goldman is Google-parent company Alphabet. With a 17% surge in 2024, Alphabet’s position in AI and impressive returns from its cloud segment set it apart as a strong contender in the market. Despite debates on capex intensity and operating trends related to YouTube, Alphabet’s ability to support ROI on AI investments is a key factor driving investor interest. Goldman’s price outlook of $217 per share suggests a 33% upside over the next year, highlighting the potential for growth in this tech giant.
In addition to Amazon and Alphabet, Goldman recommended stocks such as rideshare company Uber and sports betting platform DraftKings. These picks reflect Goldman’s confidence in companies that are well-positioned to thrive in the current investment landscape.
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