Key insights
- Barclays highlights Amazon and Meta as top internet stocks. Amazon benefits from AWS growth and AI partnerships, while Meta faces regulatory hurdles but focuses on efficiency. Upgrades for MercadoLibre suggest growth potential. Chewy's inclusion indicates continued strength in the online pet retail sector. Overall, the report suggests a moderately positive outlook for select US internet stocks.
Investing.com -- Barclays has released its latest rankings of top internet stocks, with Amazon and Meta Platforms leading the firm’s selections in the sector. The analysis highlights four companies that Barclays views favorably within the internet industry.
Amazon takes the top position in Barclays’ internet sector rankings. The e-commerce and cloud computing giant continues to hold the leading spot among the firm’s preferred stocks in this space.
Here are Barclays’ top-ranked internet stocks:
- Amazon.com Inc. (NASDAQ:AMZN) - The Seattle-based company secures the first position in Barclays’ internet sector rankings. Amazon operates its core e-commerce marketplace alongside its Amazon Web Services cloud computing division.
Amazon Web Services announced an expanded partnership with OpenAI and launched a new desktop AI assistant named Quick. In other news, Mizuho raised its price target on the company, citing growth in AWS.
- Meta Platforms Inc. (NASDAQ:META) - The social media company ranks second on Barclays’ list. Meta owns and operates Facebook, Instagram, WhatsApp, and other social networking platforms.
In a recent development, Meta Platforms’ planned $2 billion acquisition of Manus was blocked by Chinese regulators. The company also announced a workforce reduction of approximately 10% as part of its efficiency efforts.
- MercadoLibre Inc. (NASDAQ:MELI) - The Latin American e-commerce and fintech company takes the third spot in Barclays’ rankings. MercadoLibre operates online marketplaces and payment systems across multiple countries in the region.
MercadoLibre received an upgraded rating to Buy from Hold by analysts at Jefferies, who cited the company’s track record of investing in growth opportunities.
- Chewy Inc. (NYSE:CHWY) - The online pet products retailer rounds out Barclays’ top four internet stocks. Chewy specializes in pet food, treats, and supplies delivered directly to customers.
Chewy announced it has entered into an agreement to acquire veterinary platform Modern Animal, a deal expected to add over $125 million in annualized revenue. The company’s Board of Directors also approved a $500 million increase to its share repurchase program.
The rankings from Barclays provide insight into which internet companies the firm views as positioned well within the sector. Amazon’s first-place ranking reflects its dual strength in both e-commerce and cloud infrastructure services. Meta’s second-place position acknowledges its dominant presence in social media and digital advertising. MercadoLibre’s inclusion highlights the growth potential in Latin American digital commerce and financial services. Chewy’s appearance on the list represents the specialized e-commerce category focused on pet supplies.
These rankings represent Barclays’ current assessment of internet stocks and may be used by investors as one data point when evaluating companies in this sector.
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