Meta and Amazon Rise 5% as JPMorgan Names Them Top Internet Picks; Alphabet Gains 3% Despite Losing Its Spot
JPMorgan just reshuffled its favorite internet stocks, and one household name got cut yet still rallied. Find out which rival Meta displaced, why analysts say its ad engine is outrunning Google Search, and what could still derail the rotation.
This post may contain links from our sponsors and affiliates, and Flywheel Publishing may receive compensation for actions taken through them.
Mega-cap internet stocks are climbing after JPMorgan updated its Analyst Focus List, and the moves show money rotating within Big Tech. Meta Platforms (NASDAQ:META | META Price Prediction) stock is at $637.77, up 5% shortly after the open. JPMorgan added Meta to the list on November 9 and dropped one of its biggest rivals.
Amazon (NASDAQ:AMZN) is the other internet name on JPMorgan’s focus list, giving the firm two preferred picks in the group. Alphabet (NASDAQ:GOOGL) lost its spot, but the stock is rising anyway. U.S. stock futures posted solid gains before the open even as NVIDIA (NASDAQ:NVDA) slipped. Moves like these can shift as trading develops.
JPMorgan Says Meta’s Ad Engine Is Pulling Ahead
JPMorgan analyst Doug Anmuth wrote in the November 9 note that Meta Platforms’ relative advertising strength is “more evident than ever.” Meta’s Q3 2026 ad revenue rose 26% year over year, with North American growth speeding up to 33%. On Anmuth’s math, Meta generated approximately $13 billion in incremental ad revenue, roughly twice what Google Search added.
Looking further out, JPMorgan expects Meta’s Family of Apps ad revenue to exceed Google Search in Q4 2026 and beyond. Anmuth’s note credited AI-driven improvements in ad retrieval, ranking and targeting for the gains. Meta Platforms’ chief financial officer struck a similar tone on the company’s Q3 earnings call, stating, “Our investments and product improvements across both engagement and ads initiatives give us confidence that we have meaningful runway to grow our core business throughout 2027.”
Amazon and Alphabet Climb While NVIDIA Slides
Amazon stock is at $272.27, up 5%. Per Anmuth, Amazon Web Services (AWS) revenue grew 39% year over year in Q3. On the Q3 call, Amazon’s CEO projected that AWS can grow “north of 40% in each of 2027 and 2028.”
Meanwhile, Alphabet stock is at $293.71, up 3% despite losing its place on the list. JPMorgan kept its Overweight rating on Alphabet but flagged the slower pace of AI search monetization. Anmuth noted Google Search revenue growth slowed to 12% in Q3, while Alphabet’s free cash flow was negative for a second straight quarter on AI infrastructure spending. Anmuth cited Google Cloud’s 103% year-over-year revenue growth as a bright spot.
Big Tech strength extends past the internet names. Microsoft (NASDAQ:MSFT) stock is at $545.36, up 3%. Additionally, the iPhone maker’s stock is at $346.96, up 1%.
At the same time, NVIDIA stock is at $173.05, down 7%. CEO Jensen Huang admitted to an extramarital affair in a memo on November 8.
How Meta’s Ad Model Differs From Amazon and Alphabet
Meta Platforms earns nearly all of its revenue from ads across Facebook, Instagram, WhatsApp and Messenger, so its AI spending pays off mainly through sharper targeting. Amazon spreads its AI exposure across cloud infrastructure, e-commerce, advertising and subscriptions, and AWS sells computing power directly to enterprise customers. Alphabet runs a dual engine of Search ads and Google Cloud, and it designs its own tensor processing unit (TPU) chips.
That mix leaves Alphabet the most exposed of the three to the debate over AI’s effect on search. Of the group, Meta Platforms carries the biggest legal and regulatory burden, with no cloud or retail business to absorb its AI capital spending. All of that hyperscaler spend still has to be powered, cooled, and networked by somebody, and we highlighted seven of those suppliers in a free report on the AI boom beyond the chipmakers.
Meta and Alphabet Face a Focus-List Test
Investors are now watching whether Meta’s Family of Apps ad revenue passes Google Search in Q4, as JPMorgan projects. Optimists see AI-driven ad gains continuing to lift pricing and conversions at Meta Platforms. On the bear side, Meta’s biggest AI spending and legal burden could weigh on its margins if ad growth cools.
Alphabet could make JPMorgan’s decision look premature if search monetization speeds up and Google Cloud keeps growing. Amazon faces a separate question over whether its biggest capital spending keeps earning strong returns. Patience may make sense until the AI search monetization debate resolves.
Contact [email protected] for any questions or corrections.
David Moadel is financial writer specializing in stocks, ETFs, options, precious metals, and Bitcoin. David has written well over 1,000 articles for leading online publications, helping investors understand markets, income strategies, and risk.His work has appeared in The Motley Fool, InvestorPlace, U.S. News & World Report, TipRanks, ValueWalk, Benzinga, Market Realist, TalkMarkets, Finmasters, 24/7 Wall St., and others.With a master’s degree in education, David has taught at the elementary, high school, and college levels. That teaching background shapes his writing style: clear, educational, and practical. David has also built a loyal social-media audience by providing trustworthy financial content on YouTube, X/Twitter, and StockTwits.
