Technology

Oppenheimer Says Buy 4 Top Internet Stocks on Any Market Weakness

Needless to say, the two most nerve-wracking months for investors in most years are September and October. Historically they have been among the weakest, and September has already proven to be very volatile. A new research report from Oppenheimer says to use any market weakness to initiate or add to positions in the top Internet companies.

The report combines superb work from the firm’s technical team, layered over with the fundamental analysis by the equity analysts. Four top stocks to buy are rated Outperform at Oppenheimer, and show up very well on a technical basis.

Amazon

This absolute leader in online retail and also a dominate player in cloud storage business just crushed earnings last week. Amazon.com Inc. (NASDAQ: AMZN) serves consumers through retail websites, such as Amazon.com and Amazon.ca, which primarily include merchandise and content purchased for resale from vendors and those offered by third-party sellers.

In addition, the company serves developers and enterprises through Amazon Web Services (AWS), which provides computing, storage, database, analytics, applications and deployment services that enable virtually any businesses.

Despite currency headwinds that amounted to $1.4 billion, Amazon still had worldwide unit growth that grew 22% in the most recent quarter. Plus, AWS revenues increased an astounding 81% to $1.8 billion and that was $400 million more than the analysts’ estimates.

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The Oppenheimer price target for the stock is $640, and the Thomson/First Call consensus target is $647.63. The stock closed Monday at $548.39.

Salesforce

This company again posted outstanding quarterly earnings, and it is one of Wall Street’s favorite large cap growth ideas now. Salesforce.com Inc. (NYSE: CRM) has been the momentum stock trader’s dream over the past few years. Many on Wall Street feel that while the stock trades mostly in line with its fast organic software-as-a-service (SaaS) peer group, which many see as having the largest growth rate in 2015, the company should trade at a premium to the group.

The company posted year-over-year billings growth way above estimates and has seen operating margins expand by 1.7%. Oppenheimer and others see the company’s growing portfolio of enterprise-class solutions as not only enhancing the brand, but helping to achieve access into bigger companies.

Wall Street as a whole sees substantial billings growth and many firms have raised their fiscal 2016 estimates on both revenues and earnings. The general take is that the company’s new analytics product is factored into 2016 estimates and could provide upside. Some analysts also have said they think that the company’s growth guidance could be conservative as well. Lastly, Salesforce is constantly apart of Wall Street takeover chatter, and that tends to keep short sellers at a distance.

The Oppenheimer price target of $80 is right in line with the $80.98 consensus. The stock closed Friday at $72.14.

ALSO READ: 9 Analyst Stock Picks Under $10 With Huge Upside Calls

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