As one of the few true secular growth areas, the Nasdaq Internet index is handily outperforming the market this year, up 9 percent, compared to a 4 percent loss for the S&P 500.
The rubber meets the road for Internet stocks over the next few weeks as earnings season arrives. These shares experience some of the most volatile trading of them all after posting quarterly results.
After analyzing the relevant data points and performing channel checks, Bank of America Merrill Lynch's Justin Post recommended which stocks will report better-than-expected third-quarter results in a note to clients Tuesday.
Post is one of the top technology analysts on Wall Street. His picks average an 18 percent one-year return with a 68 percent success rate and he is ranked in the top 2 percent of all analysts, according to TipRanks.com.
Here are his favorite and least liked stocks this quarter…