The social media and Internet stocks have been gaining ground over the past couple of months. If we look at the returns of stocks, Netflix, Inc. (NASDAQ:NFLX) has been up by almost 10% since the last month, while Amazon.com, Inc. (NASDAQ:AMZN) gained 4%, and Twitter Inc (NYSE:TWTR) jumped by 37%. During the “Halftime Report” on CNBC, Seema Mody has discussed this turnaround of the internet and social media stocks and the momentum around them.
“Some analysts say the drop in price has helped reset valuation and now look more attractive at these levels,” Mody stated.
The main reason for Amazon.com, Inc. (NASDAQ:AMZN)’s stock appreciation is the interest showed by investors right after everyone found out that the company was planning to make an important announcement, which later turned up to be the Amazon.com, Inc. (NASDAQ:AMZN)’s smartphone. Another company in the spotlights is Netflix, Inc. (NASDAQ:NFLX), whose stock has had a volatile year so far and is currently 19% up year-to-date. Netflix has made a bunch of important announcements in the past couple of months, such as new shows premieres, but the most important, probably, is the company’s decision to expand in other countries. As it was reported earlier, by the end of the year, Netflix, Inc. (NASDAQ:NFLX) plans to launch in central Europe, including countries like Germany, Belgium, Luxembourg, Austria and Switzerland.
Twitter Inc (NYSE:TWTR), despite the impressive gain during the past month, is still 35% in the red since the beginning of the year. However, with the advancement of the stock, investors should be more optimistic. Mody also mentioned that earlier today, the analysts at Barclay’s have issued a bullish note on the stock. Among other things, the analysts stated that Twitter Inc (NYSE:TWTR) has had solid ad sales. However, according to Mody, other market participants consider that the strong ad sales could be caused by a slowing growth rate of the user base, which might be a cause for concerns while speaking about Twitter.