Investors usually do not waste any time reminding everyone of the dot-com bubble whenever the market takes a turn for the worse. With a recession imminent, some sectors have already corrected by so much that they are in bear market territory. Internet stocks belong to the same group.
Analysts at Evercore believe most of the internet stocks have very limited exposure to tariffs but still get hammered every time the market crashes on tariff developments. This means these stocks now present a favorable risk-to-reward ratio for investors.
We therefore decided to dig into the details of each of these internet stocks. To come up with our list of the 10 least risky internet stocks, we used the list compiled by Evercore’s analysts and ranked them by risk, with the least risky stock taking the number one spot.
10. Alphabet Inc. (NASDAQ:GOOG)
Alphabet Inc. operates in Google Cloud, Google Services, and Other Bets segments. It offers AI infrastructure, data and analytics, Chrome, Google Drive, Google Photos, internet services, and other products and services. The stock has suffered so far this year, falling over 17%.
The tech giant was in the spotlight after it announced a deal with the U.S. government last week. As per the agreement, the company will temporarily cut the prices of its Workspace software by 71% for every federal agency. The Workspace software includes Contacts, Meet, Gmail, Chat, and Calendar. The deal aims to lower government expenses and provide improved technology at reduced costs. It is effective till September 30.
As for the future, the company’s promising project, Waymo, is a major growth driver. This is GOOG’s autonomous taxi project, which is already operating in some big U.S. cities. The biggest advantage of this project is Tesla’s absence in this market, as Elon Musk’s firm uses a completely different technology for its self-driving. The firm plans to expand its services to Miami, Atlanta, and Washington. In addition to this, Waymo is paving the way for international expansion, starting with Tokyo.
9. Amazon.com, Inc. (NASDAQ:AMZN)
Amazon.com, Inc. operates in the retail sale of consumer products, subscriptions, and advertising services through physical stores and online. It operates in Amazon Web Services (AWS), North America, and International segments. The company also engages in the manufacturing and sale of electronic devices as well as in the production and development of media content.
The e-commerce giant recently introduced a new “Buy for Me” feature in its shopping app. This feature enables users to shop items from third-party websites without leaving the app. It is currently available to a limited group of users in the United States. Oliver Messenger, shopping director at Amazon, gave the details of this new feature:
“This new feature uses agentic AI to help customers seamlessly purchase from other brands within the familiar Amazon Shopping app, while also giving brands increased exposure and seamless conversion.”
The firm is expected to release its Q1 2025 earnings on April 28. Based on the guidance, the anticipated revenue growth for the quarter is about 7% YoY. Operating margin is projected to be around 10.4%. This represents a slowdown from the most recent quarter. However, analysts’ estimates are slightly higher than the guidance. They project revenue growth of 8.16% YoY along with the EPS growth of 38% YoY. Higher analyst estimates could result in volatility in the stock once the earnings come out later this month.
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