Sunday, June 2, 2013

Top Internet Companies To Invest In 2014

What's faster than a speeding cable Internet connection, and able to leap between mobile computing and old-school TV in a single bound? If you ask Google (NASDAQ: GOOG  ) , the answer's simple: lightning-fast fiber-optic Internet service.

As it stands, broad access to Google's service has been limited to the greater Kansas City area, so Fiber's been little more than an intriguing notion. But with news that Austin, Texas, is next up on Google Fiber's hit parade, the prospects are becoming intriguing that Google could build an entirely new source of revenue and turn the Internet industry upside down.

Austin, here we come
The official announcement that Fiber is coming to Austin was supposed to be a closely guarded secret, but that didn't last long. A local news outlet leaked the story a week ago that Google Fiber was going to be the subject of the joint press conference with Google and Austin Mayor Lee Leffingwell. Austin seems like a natural for Fiber, since it's widely viewed as a domestic hotbed of IT. Beginning in mid-2014, local residents will be able to choose Internet service for $70 a month, or $120 a month with Fiber TV service, at connection speeds 100 times faster than cable, according to Google.

Top Internet Companies To Invest In 2014: Amazon.com Inc.(AMZN)

Amazon.com, Inc. operates as an online retailer in North America and internationally. It operates retail Web sites, including amazon.com and amazon.ca. The company serves consumers through its retail Web sites and focuses on selection, price, and convenience. It also offers programs that enable sellers to sell their products on its Web sites, and their own branded Web sites. In addition, the company serves developer customers through Amazon Web Services, which provides access to technology infrastructure that developers can use to enable virtually various type of business. Further, it manufactures and sells the Kindle e-reader. Additionally, the company provides fulfillment; miscellaneous marketing and promotional agreements, such as online advertising; and co-branded credit cards. Amazon.com, Inc. was founded in 1994 and is headquartered in Seattle, Washington.

Advisors' Opinion:
  • [By J. Royden_Ward]

    Many were disappointed when Amazons earnings came out at 38 cents a share last quarter. Yes they beat analyst estimates. But this was way below the 91 cents in the comparative quarter the year previous. If earnings are tanking, why buy Amazon in a pullback?

    I see an incredible opportunity in Amazon. The low earnings was a smoke screen that is starting to clear. What is really happening? Amazon is doing its best to saturate the market with the Kindle Fire at an ultra-competitive price. Are earnings going to hurt short-term due to the pricing that must have a razor thin profit margin? Yes. But once you have people hooked on your device the real money comes from books, movies, apps and anything else you can offer.

    Is the above scenario playing out or is Amazon a dying company? Look to the revenue for your answer. Quarterly growth (comparing year over year) has been robust the trailing four quarters:

    • 43.9%
    • 51%
    • 38.2%
    • 36%

    Rapidly growing revenue but artificially low profit margins - for now - means that when the product saturation phase is over the profit will start to pour in. Amazon is using the printer selling approach where the hardware is almost given away when the real money is made on the ink.

    Investors are starting to realize the massive earning potential of Amazon and time is running out to accumulate. Since the beginning of 2012 Amazon has begun a new uptrend. There may be few opportunities left to pick up shares at these levels. If a small pullback comes with Amazon - take it.

  • [By Karim]

    Jeff Bezos is a very smart and committed CEO.  They have a stranglehold as the world’s largest online retailer.  It makes a lot of sense to buy stuff online and the younger generations are getting more and more comfortable doing so.  The logistics and economies of scale make it almost impossible for any other company to come into this space.  The stock price has risen considerably lately but there is still a lot more room for growth.  When they start selling their tablets with the ability to sell the largely discounted e-books, expect the stock to jump.  All the readers out there will love to buy this new tablet and they are continually making the online shopping experience better, cheaper, and easier.  People are now even buying from their mobile phones with the Amazon App.  Solid long term hold.

  • [By Dennis Slothower]

    Miller had about $270 Million of Amazon.com shares at the end of December. The stock returned 60.8% during the past 1 year, beating the SPY by a huge margin. The stock holdings were reduced by 30% during the last 3 months of 2010. AMZN returned 5% since then, 0.8 percentage points less than SPY’s return. AMZN is Miller’s best long-term pick. Facebook billionaire Chase Coleman and Roberto Mignone has large AMZN holdings as well.

Top Internet Companies To Invest In 2014: Symantec Corporation(SYMC)

Symantec Corporation provides security, storage, and systems management solutions internationally. The company?s Consumer segment delivers Internet security, PC tune-up, and online backup solutions and services to individual users and home offices. Its Security and Compliance segment provides solutions for endpoint security and management, compliance, messaging management, data loss prevention, encryption, and authentication services to large, medium, and small-sized businesses, as well as offers solutions through its software-as-a-service (SaaS) security offerings. This segment?s products enable customers to secure, provision, and remotely manage their laptops, PCs, mobile devices, and servers. The company?s Storage and Server Management segment provides storage and server management, backup, archiving, and data protection solutions across heterogeneous storage and server platforms, as well as solutions delivered through its SaaS offerings to large, medium, and small-s ized businesses. Symantec?s Services segment offers implementation services and solutions, including consulting, business critical services, education, and managed security services. The company also provides various enterprise support offerings, such as annual maintenance support contracts, including content, upgrades, and technical support. It sells its products through its eCommerce platform, as well as through distributors, direct marketers, Internet-based resellers, system builders, ISPs, and retail locations worldwide. Symantec markets and sells its products through distributors, retailers, direct marketers, Internet-based resellers, original equipment manufacturers, system builders, and Internet service providers; and its e-commerce channels, as well as direct sales force, value-added and large account resellers, and system integrators. The company was founded in 1982 and is headquartered in Mountain View, California.

Advisors' Opinion:
  • [By Jonas Elmerraji]

     Symantec (SYMC) is having a better year in 2012. Shares of the $13 billion computer security firm have rallied around 18% year-to-date, besting the broad market's performance by a slight margin. Much of Symantec's performance came in the late Summer, when the stock gapped up and started moving higher extremely quickly.

    But that straight-up trajectory wasn't sustainable, so shares have spent the last couple of months consolidating sideways in a price channel. Sideways consolidation isn't a bad thing -- it just means that investors are trying to catch their breath after a big volatile run. With resistance coming in at $19.25, buyers have a pretty well defined signal that the rest is over for SYMC and another rally leg is beginning. I wouldn't recommend buying until then.

    Remember, these setups all come down to supply and demand from buyers and sellers. After the huge push higher at the end of the summer, sellers started coming in at $19.25 -- it was a price where sellers were more eager to sell and take gains than buyers were to keep buying. That's why the breakout above $19.25 is a buy signal; a breakout indicates that buyers have gained enough strength to absorb all of the excess supply above $19.25.

    Without that upside barrier, this stock should be able to keep running higher…

Top Mid Cap Companies To Buy For 2014: Yahoo! Inc.(YHOO)

Yahoo! Inc., together with its subsidiaries, operates as a digital media company that delivers personalized digital content and experiences through various devices worldwide. It offers online properties and services to users; and a range of marketing services to businesses. The company?s communications and communities offerings include Yahoo! Mail, Yahoo! Messenger, Yahoo! Groups, Yahoo! Answers, Flickr, and Connected TV, which provide a range of communication and social services to users and small businesses enabling users to organize into groups and share knowledge, common interests, and photos. Its search products comprise Yahoo! Search and Yahoo! Local, available free to users to navigate the Internet and discover content. The company?s marketplaces offerings and services include Yahoo! Shopping, Yahoo! Travel, Yahoo! Real Estate, Yahoo! Autos, and Yahoo! Small Business, which allow users to research specific topics, products, services, or areas of interest by review ing and exchanging information, obtaining contact details, or considering offers from providers of goods, services, or parties with similar interests. Its media offerings comprise Yahoo! Homepage, Yahoo! News, Yahoo! Sports, Yahoo! Finance, My Yahoo!, Yahoo! Toolbar, Yahoo! Entertainment & Lifestyles, Yahoo! Contributor Network, and Yahoo! Pulse, which are designed to engage users with online content and services on the Web. The company also offers marketing services, such as display and search advertising, listing-based services, and commerce-based transactions to advertisers. In addition, it provides software and platform offerings for third-party developers, advertisers, and publishers, such as Yahoo! Developer Network, Yahoo! Open Strategy, Yahoo! Application Platform, Yahoo! Updates, Yahoo! Query Language, and Yahoo! Search BOSS. The company has strategic alliances with Nokia and ABC News, Inc. Yahoo! Inc. was founded in 1994 and is headquartered in Sunnyvale, Californi a.

Advisors' Opinion:
  • [By Jon C. Ogg]

    Yahoo! Inc. (NASDAQ: YHOO) had a full shareholder recovery under new CEO Marissa Mayer, but now the company has to begin to execute on its strategy. Mayer probably has another three months before Wall St. will demand to see increasingly better results. We only say this because the shares rose by more than one-third from the summer lows to the peak above $20. Mayer has delivered on her promise to monetize the stake in Alibaba in China, and there is hope that more monetization from that may be seen, or from the Yahoo! Japan stake. Microsoft Corp. (NASDAQ: MSFT) may represent the biggest opportunity, but it also may represent the largest challenge. Yahoo! looks as though it will be a content destination rather than stepping backwards to become a search and aggregation destination.

    Yahoo! trades at $19.40, but it has lost some momentum after closing at $20.08 and peaking at $20.32 for its 52-week high on the first trading day of 2013. The company has a $23 billion market cap, and we would caution that analysts have a consensus price target of only $19.66 after a fresh downgrade by Bernstein on valuation. Yahoo! trades at about 17-times current and forward earnings expectations.

    As you might have expected, there is an ETF for that! The First Trust Dow Jones Internet Index (NYSEMKT: FDN) ETF trades at $40.60, but note that it hit a 52-week high, and that the 52-week is now $40.67. We would also note that the volume of almost 2.4 million shares seen this past Monday was basically twice as active as the three busiest trading days of 2012 in this ETF.

Top Internet Companies To Invest In 2014: Internap Network Services Corporation(INAP)

Internap Network Services Corporation provides information technology (IT) infrastructure services. The company operates through two segments, Data Center Services and IP Services. The Data Center Services segment provides colocation services, which include physical space for hosting customers? IT infrastructure network and other equipment, as well as offers associated services, such as redundant power and network connectivity, environmental controls, and security. This segment also offers managed hosting services that enable its customers to own and manage the software applications and content, as well as provides and maintains the hardware, operating system, collocation, and bandwidth. The IP services segment provides patented performance Internet protocol (IP) service; XIP acceleration-as-a-service solution; and flow control platform, a premise-based intelligent routing hardware product for customers, who run their own multiple network architectures, known as multi-homi ng. In addition, this segment offers content delivery network services that enable its customers to stream and distribute media and content, such as video, audio software, and applications to audiences through points of presence, as well as offers capacity-on-demand services to handle events and unanticipated traffic spikes. Internap Network Services Corporation provides its services and products through 76 IP service points, which include 20 CDN POPs and 1 standalone CDN POP, as well as through 37 data centers across North America, Europe, and the Asia-Pacific region. It serves the entertainment and media, financial services, business services, software, hosting and information technology infrastructure, and telecommunications industries. The company was founded in 1996 and is based in Atlanta, Georgia.

Advisors' Opinion:
  • [By Harding]

    Internap Network Services Corporation is an Internet solutions and data Center Company providing a suite of network optimization and delivery services and products that manage deliver and distribute applications. Its EPS forecast for the current year is 0.12 and next year is 0.21. According to consensus estimates, its topline is expected to grow 2.85% current year and 9.34% next year. It is trading at a forward P/E of 34.33. Out of eight analysts covering the company, three are positive and have buy recommendations and five have hold ratings.

Top Internet Companies To Invest In 2014: IAC/InterActiveCorp (IACI)

IAC/InterActiveCorp engages in the Internet business in the United States and internationally. The company�s Search segment develops, markets, and distributes various downloadable toolbars; provides search, reference, and content services through its destination search and other Websites, including Ask.com and Dictionary.com; and aggregates and integrates local advertising and content for distribution to publishers on Web and mobile platforms, as well as markets and distributes mobile applications through which it provides search and additional services. Its Match segment offers subscription-based and advertiser-supported online personals services through its Websites comprising Match.com, Chemistry.com, OurTime.com, BlackPeopleMeet.com, and OkCupid.com, as well as through mobile applications and Meetic-branded Websites. The company�s ServiceMagic segment offers Market Match service that matches consumers with service professionals; Exact Match service, which enables con sumers to review service professional profiles and select the service professional that meets their specific needs; and 1800Contractor.com, an online directory of service professionals. This segment also offers Website design and hosting services. Its Media and Other segment operates CollegeHumor.com, an online entertainment Website that targets young males; Vimeo, a Website on which users can upload, share, and view video; and Pronto.com, a comparison search engine. This segment also engages in the creation of video content for various distribution platforms; and operates as an Internet retailer of footwear and related apparel and accessories, as well as focuses on multimedia business. The company was formerly known as InterActiveCorp and changed its name to IAC/InterActiveCorp in July 2004. IAC/InterActiveCorp was founded in 1986 and is headquartered in New York, New York.

Advisors' Opinion:
  • [By Lisa Springer]

    IAC/InteractiveCorp. (NASDAQ: IACI) is perhaps the forgotten Internet company. This $4 billion Web property gets very little love and respect from Wall St. because it is such a smaller competitor and it is considered a hodge-podge of Web properties. It has media, shopping and the Ask.com search engine, and that search is said to be the glue that keeps it together. Its Ask.com is still one of the largest search engines running, at number four in most rankings, but it is incredibly small when compared to Google and even compared to Microsoft along with Yahoo! Its own efforts to become a content destination have been met with a mixed reception, and the stock chart shows no real read either way at the start of 2013. What is amazing is that the company has grown without many investors paying attention.

    IAC/InteractiveCorp shares trade at $46.00, and its 52-week range is $40.87 to $55.57. Analysts have a consensus value of just over $60.00, for an implied upside of close to 30%, and IAC trades at only about 12-times earnings. Is this a Web value stock in the making?

Top Internet Companies To Invest In 2014: Google Inc.(GOOG)

Google Inc. maintains an index of Web sites and other online content for users, advertisers, and Google network members and other content providers. It offers AdWords, an auction-based advertising program; AdSense program, which enables Web sites that are part of the Google Network to deliver ads from its AdWords advertisers; Google Display, a display advertising network that comprises the videos, text, images, and other interactive ads; DoubleClick Ad Exchange, a real-time auction marketplace for the trading of display ad space; and YouTube that provides video, interactive, and other ad formats for advertisers. The company also provides Google Mobile that optimizes Google?s applications for mobile devices in browser and downloadable form; and enables advertisers to run search ad campaigns on mobile devices, as well as Google Local that provides local information on the Web; and Google Boost for small businesses to participate in the ads auction. In addition, it offers And roid, an open source mobile software platform; Google Chrome OS, an open source operating system; Google Chrome, a Web browser; Google TV, a platform for the consumers to use the television and the Internet on a single screen; and Google Books platform to discover, search, and consume content from printed books online. Further, the company provides Google Apps, a cloud computing suite of message and collaboration tools, which includes Gmail, Google Docs, Google Calendar, and Google Sites; Google Search Appliance that offers real-time search of business and intranet applications, and public Web sites; Google Site Search, a custom search engine; Google Commerce Search for online retail enterprises; Google Checkout to make online shopping and payments streamlined and secure; Google Maps Application Programming Interface; and Google Earth Enterprise, a firewall software solution for imagery and data visualization. Google Inc. was founded in 1998 and is headquartered in Mountain View, California.

Advisors' Opinion:
  • [By Chuck]  

    The brokerage expect outperformance for Google, given continued strength in the paid search market driven by a modestly improving economy and online share gains and traction with non-search businesses, primarily display and mobile. The brokerage is modeling 18 percent and 19 percent revenue and EPS growth, respectively, in 2011.

  • [By Bill]

    Google Inc. (Nasdaq: GOOG : 527.41, 5.92) announced to have purchased technology patents from International Business Machine Corp. (NYSE: IBM) as the former stocks up on intellectual property to defend itself against lawsuits. Shares of IBM were down 0.33 percent or 60 cents to trade at $181.20 in the pre-market trading. Shares of Google had closed at $610.94 yesterday.

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