Home 2024 JPMorgan Amazon and Alphabet Top Picks for 2024 $AMZN $GOOGL

Wall Street heavyweight JPMorgan is making a bold call on internet stocks for 2024, dubbing Amazon and Alphabet its “top picks” and predicting double-digit upside for both tech giants. This bullish outlook hinges on a belief that mega-cap tech’s reign will continue next year, fueled by reaccelerating revenue growth and strategic margin management.

Why Amazon is Soaring:

  • E-commerce Engine Revving Up: JPMorgan expects Amazon’s total revenue to surge 13% in 2024, propelled by a 17% jump in Amazon Web Services (AWS) and an 11% increase in retail growth.
  • Cloud Computing Champion: AWS, already a cloud market leader, will benefit from strong secular trends, new workload deployments, and growing contributions from its cutting-edge Gen AI advancements.
  • Retail Rebound: With increased same-day delivery, expanded third-party fulfillment, and pricing power, Amazon’s core retail segment is poised for an 11% growth spurt.
  • Profitability on the Rise: Operating income margin is projected to expand by 200 basis points, thanks to margin improvements in North America, International business, and a slight inflection in AWS margins.

Alphabet’s AI Advantage:

  • Ad Revenue Ascending: Gross revenue is expected to climb 11% in 2024, driven by Google Cloud and YouTube ads. AI-powered ad tools, secular shifts in online advertising, YouTube Shorts monetization, and favorable comparisons are key drivers.
  • Margin Magic: JPMorgan forecasts a 175-basis-point expansion in profit margin as Alphabet optimizes its cost structure.
  • Gen AI Leapfrog: The innovative Gemini Ultra platform positions Alphabet to bridge the gap with Generative AI leaders, further solidifying its AI-forward image.
  • Undervalued and Unloved: Weaker sentiment and lower institutional ownership, coupled with an “undemanding” valuation, make Alphabet a lucrative opportunity for investors in 2024.

Looking Ahead:

JPMorgan acknowledges potential hurdles like antitrust lawsuits against Google and a potential slowdown in the broader tech sector. However, the bank’s unwavering belief in the power of Amazon’s e-commerce engine and Alphabet’s AI prowess leads them to predict outsized gains for both companies in 2024.

This bold call from a major financial institution is sure to send ripples through the tech landscape. Investors looking for high-growth, high-margin plays in the internet space will keep a close eye on Amazon and Alphabet as they aim to scale new heights in the coming year.

Shayne Heffernan

You may also like

logo-white

Your Trusted Source for Capital Markets & Related News

© 2024 LiveTradingNews.com – For The Traders, By The Traders – All Right Reserved.

The information contained on this website shall not be construed as (i) an offer to purchase or sell, or the solicitation of an offer to purchase or sell, any securities or services, (ii) investment, legal, business or tax advice or an offer to provide such advice, or (iii) a basis for making any investment decision. An offering may only be made upon a qualified investor’s receipt not via this website of formal materials from the Knightsbridge an offering memorandum and subscription documentation (“offering materials”). In the case of any inconsistency between the information on this website and any such offering materials, the offering materials shall control. Securities shall not be offered or sold in any jurisdiction in which such offer or sale would be unlawful unless the requirements of the applicable laws of such jurisdiction have been satisfied. Any decision to invest in securities must be based solely upon the information set forth in the applicable offering materials, which should be read carefully by qualified investors prior to investing. An investment with Knightsbridge is not suitable or desirable for all investors; investors may lose all or a portion of the capital invested. Investors may be required to bear the financial risks of an investment for an indefinite period of time. Qualified investors are urged to consult with their own legal, financial and tax advisors before making any investment. Knightsbridge is a private investment firm that offers investment services to Qualified Investors, Members and Institutions ONLY. Qualified Investors are defined as individuals who have met those Qualifications in the relevant jurisdictions. Members are defined as individuals who have been accepted into the Knightsbridge membership program. Institutions are defined as entities such as banks, pension funds, and hedge funds. If you are not a Qualified Investor, Member or Institution, you are not eligible to invest with Knightsbridge. All investments involve risk, and there is no guarantee of profit. You may lose some or all of your investment. Past performance is not indicative of future results. Knightsbridge is not a registered investment advisor, and this disclaimer should not be construed as investment advice. Please consult with a qualified financial advisor before making any investment decisions. By accessing this website, you agree to the terms of this disclaimer. Thank you for your interest in Knightsbridge.