J.P. Morgan: give Fang an overweight rating. Alphabet and Facebook are the best choices this year


Sina science and technology news on the morning of January 20, according to reports, although the market heat of technology large cap stocks has cooled in recent weeks and the stock price has not performed well, JPMorgan Chase believes that investors should buy these stocks again.
In the first two weeks of the new year, shares of Facebook, Amazon, Netflix and Google’s parent company alpha (Fang) fell one after another. JPMorgan’s team of Internet analysts, led by Doug anmuth, said in a report on Monday that the market’s move from these stocks to other sectors has frustrated shareholders.
“Our dialogue with investors in early 2021 shows that they are really tired and frustrated with Fang, including the tepid stock price and the uncertainty of market style transition,” he wrote in the report
JPMorgan said the underlying reasons for the weakness include market rotation to cyclical stocks, the shift of funds to newly listed technology companies or new S & P 500 component Tesla, and the current regulatory pressure.
However, JPMorgan still believes that all four stocks are worth buying, and alpha and Facebook are expected to accelerate growth this year. “We rated the four stocks of Fang as’ overweight ‘, but our ranking is: 1) alphabet; 2) Facebook; 3) Amazon; 4) Netflix. Both alphabet and Facebook are the best choices for 2021 and are on JPMorgan’s analyst watch list. ”
JPMorgan said that alphabet plans to publish Google cloud’s profit data in its upcoming earnings report, which may help investors re-examine the company.
“In view of the large investment in Google cloud in recent years, we believe that the break even or small profit of the cloud business shows the profit path of Google cloud and the profit stability and expansion potential of other Google departments,” the report said
According to the ammus team, investors seem to be most tired of Facebook because of regulatory concerns and lack of diversification of business models. JPMorgan Chase gave the stock a target price of $330, 29% higher than Tuesday’s trading price. They are optimistic about Facebook reels and new shopping features.