JPMorgan favors Meta and Amazon for AI-related growth
AI · First reported 9 Nov, 15:39 · Updated 16:22
JPMorgan named Meta and Amazon its preferred internet stocks, citing advertising gains at Meta and cloud growth at Amazon. It retained an Overweight rating on Alphabet while highlighting uncertainty over AI-search monetization and the potential effect of computing costs on cash flow.
- Meta and Amazon shares each rose more than 5% on Monday after JPMorgan named them its preferred internet stocks.
- JPMorgan expects Meta’s Family of Apps advertising revenue to surpass Google Search revenue from the fourth quarter, and forecasts AWS growth above 40% in 2027 and 2028.
- The firm kept Alphabet at Overweight, while warning that AI-search monetization may take time and computing costs could pressure cash flow.
Summary written by Lux AI from 2 articles
Key facts
- Meta advertising revenue
- $63.1 billion in the fiscal third quarter, up 26% year over year.
- Amazon AWS revenue
- $46 billion in the third quarter, up 39% year over year.
- AWS growth forecast
- JPMorgan expects growth above 40% in 2027 and 2028.
- Alphabet rating
- JPMorgan maintained its Overweight rating.
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