Best Online Retailers to Buy Now: Internet Analyst
Online retailers are becoming increasingly popular with people shopping at home—or on their work computers. So how can investors make money in the subsector? Benjamin Schacter, internet analyst at Broadpoint AmTech, shared his view.
“Google is really an e-commerce play,” Schacter told CNBC. “People think of it as a search, content or news…but the reality is, they’re part of e-commerce.”
Broadpoint AmTech maintains a “buy” rating on Google and raised the price target on Google by $40.
“When people are searching for products, they need to go to Google to find them,” said Schacter. “And as long as they do that, Google can make money and provide a good experience for the users as well as the advertisers.”
Online auction giant eBay, once at the height of online shopping, has faced a bumpy road in recent years with rising competition from the likes of Amazon.com and Wal-Mart's online store. Schacter said he is still bullish on the auction company in the short-term.
“EBay had its problems…[but] we think they’ve turned the corner somewhat,” he said. “They’ve easy comps, the currency hedge behind them."
But, he added, "This is a company that needs to put its gas pedal down and fix some of the problems on its site…We think they’re going to have a continued run for the near-term, but we need to save some time and see if they can actually turn things around on the fundamental level over time.”
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No immediate information was available for Schacter or his firm.