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Top Analyst Bullish on Internet Stocks Into Upcoming Earnings Reports

eBay

This top internet company has long been rumored to be in play as a takeover target. eBay Inc. (NASDAQ: EBAY) operates e-commerce platforms that connect various buyers and sellers worldwide. Its platforms enable sellers to organize and offer inventory for sale, and buyers to find and buy it virtually anytime and anywhere.

The company’s Marketplace platforms include its online marketplace at ebay.com and the eBay mobile apps, as well as StubHub platforms that comprise its online ticket platform at stubhub.com and the StubHub mobile apps, which enable fans to purchase tickets to the games, concerts and theater shows. Its Classifieds platforms include a collection of brands, such as Mobile.de, Kijiji, Gumtree, Marktplaats, eBay Classifieds and others that offer online classifieds and help people find whatever they are looking for in their local communities.

While not pounding the table, the SunTrust team are positive into the print on Wednesday and said this:

We maintain a BUY rating into the fourth quarter results and expect to see in line results, showing that progress on initiatives started 2 years ago to revive top-line growth through improvements in structured data, machine learning, user experience and merchandising, continue.

The $46 SunTrust price target is well above the posted consensus estimate of $40.58. The shares were last seen trading at $40.80 apiece.

Shutterfly

This stock has been on fire since late last year, and it is another SunTrust favorite. Shutterfly Inc. (NASDAQ: SFLY) is an e-commerce company that enables consumers to store, share and create photo-related merchandise, such as photo books, personalized calendars, greeting cards and numerous other products. The company operates Shutterfly, Tiny Prints, Wedding Paper Divas, BorrowLenses.com and ThisLife.

Shutterfly also operates an enterprise printing business and is based in Redwood City, California, while operating manufacturing facilities in Arizona, Minnesota and South Carolina. The SunTrust analyst remain positive on the company, which is expected to report its results after the close today, and noted this:

We believe the enhanced user experience and richer product offerings will prove effective in re-engaging customers on the new Shutterfly.com platform, and driving in line results. The stock has performed well since mid-Nov (+30% vs. IWM +10%), due to a combination of tax reforms and attractive valuation.

The SunTrust price target is $60. The posted consensus target is $53, and the shares closed most recently at $52.98.

These four red-hot internet companies all will report earnings this week. While it can be risky buying shares in front of earnings, it can pay off handsomely. It may make sense to buy partial positions and see exactly how the market responds, especially given the current weakness.