JPMorgan (NYSE: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.
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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.