JPMorgan (JPM) initiated coverage on five red-hot tech stocks in a bullish note released Wednesday, citing double-digit global growth in online advertising and e-commerce.

Amazon (AMZN), Netflix (NFLX) and Google (GOOG) were given "overweight" ratings with price targets of $251, $340 and $660, respectively, according to various media reports.

EBay (EBAY) and Yahoo (YHOO) were initiated with "neutral" ratings with price targets of $38 and $18, respectively.

We believe Amazon, Apple, Google, Facebook, and to a lesser degree eBay, are emerging as primary platforms on top of which large amounts of online/mobile communications, advertising, and commerce are likely to be conducted, JPMorgan said in a note to clients, according to Reuters.

Online video content, virtual goods, applications, cloud-based services and online advertising and e-commerce are expected to bolster the Internet economy, according to JPMorgan. Web advertising contributes about 18% to total advertisement spending and e-commerce makes up about 9% of total retail in the U.S., according to the reports.

Still, JPMorgan analysts warned the companies remain vulnerable to competition and increased regulatory scrutiny.

Follow Jennifer Booton on Twitter at @Jbooton