The future of Internet stocks is looking bright, with Amazon Inc. (AMZN) and Alphabet Inc. (GOOGL, GOOG) expected to be the top performers in 2024, according to a recent forecast by JPMorgan.
In their Wednesday note, JPMorgan identified Amazon and Alphabet as the probable front-runners for 2024, predicting a renewed surge in their revenue growth along with steady profit margins. Amazon’s overall revenue is expected to rise by 13% from its 2023 levels, driven by an increase in Amazon Web Services and the retail sectors. JPMorgan has set a $190 price target for Amazon, indicating a potential 29% increase from the current price point. Amazon’s shares have already seen a significant upswing of 75% in 2023, outperforming the Nasdaq 100’s 50% gain.
Meanwhile, Alphabet has been assigned a $160 price target by JPMorgan, reflecting a possible 21% increase from the current levels. The bank predicts an 11% rise in Alphabet’s gross revenue in 2024, largely fueled by Google Cloud and YouTube ads. Alphabet’s shares experienced a 49% rise in 2023, slightly underperforming the Nasdaq 100’s 50% gain.
These predictions come at a time when Amazon is facing antitrust lawsuits filed by the U.S. Federal Trade Commission (FTC) for alleged anticompetitive practices. Despite these legal challenges, the company’s stock has been performing well.
Alphabet’s projected growth is not surprising, considering the company’s recent advancements in Artificial Intelligence (AI) with the introduction of Gemini, its most potent AI model to date. JPMorgan believes that “Gemini Ultra represents significant innovation and should start to close the Gen AI gap as it rolls out in early 2024.”
Overall, it seems that both Amazon and Alphabet are poised for success in the coming year, with strong revenue growth and promising prospects in their respective sectors.