Roughed Up Internet Stocks Starting To Look Attractive, Says Goldman Sachs
Summary
With the average market-cap valuation on internet stocks hitting a five-year low in December, the battered sector is looking more attractive, a report from Goldman Sachs said Friday.Goldmans Friday report updated ratings, estimates and price targets to reflect the brokerages current outlook.In the second half of 2018, the basket of internet stocks followed by Goldman Sachs "significantly underperformed" the S&P 500.Goldman said underlying growth in e-commerce and online advertising demand should continue to drive share gains for most internet stocks."While we believe underlying fundamentals are generally strong, regulation remains the most in focus given actions in Europe around data, privacy, and competition, as well as discussions of whether the U.S. and other markets may follow a similar path.