Anthony Noto is looking for the new “new economy” in 2007.
Noto, an Internet and entertainment analyst at Goldman Sachs, told “Squawk Box” that the Web sector should be bigger in the new year.
Speaking with CNBC’s Bill Griffeth, the analyst said Internet companies – driven by secular stimuli, as opposed to cyclical stocks – should see growth continuing “at least” at the 2006 level of 20% for “pure” e-commerce and 30% for online advertising. He maintained that returns can only improve this year, as he believes the Federal Reserve will keep interest rates flat – or even cut them.
Noto cited News Corp. and The Walt Disney Co. as Web plays, based on their access to “new windows of [content] distribution.” He sees eBay earnings outperforming, declaring that the online auctioneer’s “problems are behind it.” And few will be surprised that Noto’s No. 1 Web pick was Google, which he says will benefit from branded ads and its business-applications suite.
Full disclosure: Goldman Sachs is a holder of both Google and eBay shares; and Goldman provides investment banking services to Google, eBay, The Walt Disney Co. and News Corp. Further, Goldman provides non-investment banking services and non-securities services to Google, eBay, The Walt Disney Co. and News Corp. and has received compensation from them.