5 Top-Ranked Large-Cap Internet Stocks To Boost Your Portfolio
Zacks Investment Research | Sep 09, 2019 09:46PM ET
Internet companies are delivering innovative solutions to address evolving consumer preference, which is driven by the need for convenience and easy accessibility. This boosts the business prospects of Internet companies. Also, improving Internet speed, rapid adoption of 4G Volte technology and accelerated deployment of 5G technology — the next-generation of wireless connectivity — are tailwinds.
Moreover, growth in digital advertising, rapid adoption of online payment methods, cloud computing and cloud-based gaming and expanding online delivery modes are some major catalysts.
The optimism surrounding Internet stocks is reflected in the robust year-to-date performance of Invesco NASDAQ Internet ETF (PNQI), which has rallied 23.6% compared with the S&P 500’s growth of 19.3%.
Promising Initiatives to Expand User Base
Internet-based companies have seamless access to a wealth of information provided by users. This helps them to integrate AI, ML and deep learning into their solutions. Moreover, real-time analysis of user data supported by AI tools is helping advertisers target the right audience, which is boosting their return on investment.
Additionally, focus on video streaming has been driving user engagement that is attracting advertising dollars.
Moreover, transition to SaaS-based (or Software as a Service) applications boosts growth prospects of Internet-based companies. Notably, demand for cloud infrastructure monitoring, web-based application performance management, human capital management (HCM) and cyber security software has been on the rise.
Furthermore, social media platforms are coming up with e-commerce verticals. This is enabling Internet-based companies like Facebook (NASDAQ:FB) to tap new opportunities and expand their total addressable market.
These initiatives are enabling Internet companies to expand their user base and realize business goals.
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