Wedbush on Thursday named Alphabet, Uber, Reddit, and Xometry its top internet stock picks across different market-cap categories, with analyst Ygal Arounian calling artificial intelligence the 'single most impactful swing factor' shaping the sector's outlook. The firm assigned Outperform ratings with price targets implying upside ranging from 20% to 28% for these four companies. Wedbush stated that companies with the 'strongest combination of technology, product, and distribution' are best positioned to benefit as AI reshapes the internet industry.
The firm's preferred names outperformed in pre-market trade. The Nasdaq-100 tracking Invesco QQQ Trust fell 0.83% in premarket trading, while the SPDR S&P 500 ETF slipped 0.26%. GOOGL's stock and UBER shares rose nearly 1% each, while RDDT stock edged 0.25% higher and XMTR shares traded flat.
Wedbush Names Alphabet Top Mega-Cap Pick With $445 Target
Among mega-cap internet names, Wedbush named Alphabet its top pick with an Outperform rating and a $445 price target, implying potential 20% upside from Wednesday's close of around $370. The firm assigned this as its highest-conviction mega-cap rating.
Amazon Receives Outperform Rating While Meta Gets Neutral
Amazon shares received an Outperform rating with a $293 price target, representing about 15% potential upside from a $254 closing price in the previous session. AMZN's stock moved 0.6% higher in pre-market trade.
Meta Platforms was the only mega-cap to receive a Neutral rating. Wedbush assigned a $671 price target, which sits below Wednesday's closing price of $681, implying limited near-term upside after the stock's strong rally. META's stock edged 0.14% higher in pre-market trade.
Uber Leads Large-Cap Category With 27% Upside Target
Wedbush selected Uber as its preferred large-cap internet stock, assigning an Outperform rating and a $91 price target, implying approximately 27% upside from Wednesday's close of around $72.
Instacart also earned an Outperform rating with a $59 target, representing roughly 24% upside from Wednesday's close of around $47. DoorDash received a Neutral rating with a $205 price target, leaving about 8% upside from Wednesday's close of $190. DASH's stock edged 0.4% higher in pre-market trade, while CART's stock traded flat.
Reddit Earns Top Mid-Cap Pick With $250 Price Target
Among social platforms, Reddit was Wedbush's top mid-cap pick. The firm assigned an Outperform rating and a $250 target, implying about 26% upside from a closing price of $198 in the previous session.
Pinterest received a Neutral rating with a $24 price target, reflecting more modest expected gains than Reddit.
Xometry Named Preferred Small-Cap Internet Stock
For small-cap internet stocks, Wedbush named Xometry its preferred pick, initiating coverage with an Outperform rating and a $126 price target, implying nearly 28% upside.
FAQ
Which internet stocks did Wedbush rate as top picks?
Wedbush on Thursday named Alphabet as its top mega-cap pick, Uber as its preferred large-cap stock, Reddit as its top mid-cap selection, and Xometry as its preferred small-cap internet stock. All four received Outperform ratings with price targets implying upside ranging from 20% to 28%.
What price target did Wedbush assign to Alphabet stock?
Wedbush assigned Alphabet an Outperform rating with a $445 price target, implying potential 20% upside from Wednesday's close of around $370. The firm called this its highest-conviction mega-cap rating.
Why does Wedbush favor these internet stocks?
Wedbush analyst Ygal Arounian called artificial intelligence the 'single most impactful swing factor' shaping the internet sector's outlook. The firm stated that companies with the 'strongest combination of technology, product, and distribution' are best positioned to benefit as AI reshapes the internet industry.
