18 Internet Stocks And What To Do With Them

Monness Crespi Hardt updated its coverage of 18 popular internet stocks. The firm has mixed reviews of the space, and its commentary and ratings suggest investors should be careful in choosing their internet portfolios these days.

Here’s a rundown of what Monness Crespi Hardt analysts had to say.

1. Apple Inc. AAPL initiated at Buy with a $235 target. Monness anticipates Apple will cross the $1 trillion market cap mark within the next 12 months and says the stock remains one of the most underappreciated value plays in the market.
2. Alphabet Inc Class A GOOGL reiterated at Buy with a $1,280 target. Monness said Google’s dominant position as the top global search engine and mobile operating system coupled with its track record of innovation makes it an excellent long-term bet for investors.
3. Facebook, Inc. FB reiterated at Buy, target lowered from $210 to $200. Monness said Cambridge Analytica fallout will likely negatively impact user metrics in the near-term, but the company’s long-term growth prospects make it a terrific value for those willing to ride out the turbulence.
4. Twilio Inc TWLO initiated at Buy with a $60 target. Monness said Twilio is a pioneer in the massive and rapidly-growing cloud communications platform market.
5. Mongodb Inc MDB initiated with a Buy rating and $51 target. Monness said Mongodb is well-positioned to capitalize on the disruptive secular trend of digital transformation.
6. Splunk Inc SPLK initiated at Buy with a $132 target. Monness said the company’s impressive growth rate is a reflection on its leading position in the booming machine data market.
7. Salesforce.com, Inc. CRM initiated at Buy with a $152 target. Monness said Salesforce is the global SaaS market leader and has been aggressively launching innovative products to preserve its competitive moat.
8. Workday Inc WDAY initiated at Buy with a $156 target. Monness said Workday’s advantage is its Human Capital Management business, and the company has delivered innovative solutions and rapidly grown its portfolio.
9. Red Hat Inc RHT initiated at Buy with a $175 target. Monness said Red Hat is the clear leader in the enterprise Linux operating system market and has consistently beat Wall Street expectations in recent quarters.
10. Amazon.com, Inc. AMZN reiterated at Buy with a $2,000 target. Despite being the top public cloud services provider and the top global e-commerce retailer, Monness said Amazon has plenty of room to expand both businesses and further monetize its competitive advantage.
11. Netflix, Inc. NFLX reiterated at Buy, target raised from $300 to $350. Monness said Netflix is the global leader in streaming video, and last year’s successful price hike demonstrates its long-term pricing power.
12. Box Inc BOX initiated at Neutral with no target. Monness said Box’s cloud content management business is underappreciated, but the company’s growth is slowing and hasn't exceeded Wall Street expectations.
13. Cloudera Inc CLDR initiated at Neutral with no target. Monness said the company has a major long-term opportunity in big data, but its most recent quarterly stumble demonstrates that it's experiencing some growing pains that could cap the stock’s upside.
14. Hortonworks Inc HDP initiated at Neutral with no target. Monness said Hortonworks' lackluster 2018 guidance coupled with Cloudera’s recent guidance cut make Hortonworks a risky bet at the moment.
15. Oracle Corporation ORCL initiated at Neutral with no rating. Monness says Oracle’s presence in SaaS, PaaS and IaaS gives it a unique competitive advantage, but its uninspiring cloud growth in recent years has been disappointing.
16. Snap Inc SNAP reiterated at Neutral with no target. Monness wants to see the impact of the new Snapchat app design and more consistency from the company in beating Wall Street expectations.
17. Tableau Software Inc Class A DATA initiated with a Neutral rating and no target. Tableau’s growth has slowed in recent years and its transition to a subscription-based model resulted in its first ever negative quarterly revenue growth in the fourth quarter.
18. VMware, Inc. VMW initiated at Neutral with no target. Monness says VMware excels at the virtualization software market, but its steep valuation and its convoluted and uncertain relationship wth Dell limits its upside at the moment.

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