JPMorgan recommends Facebook and Netflix into earnings, but is 'cautious' on Amazon

Key Points
  • JPMorgan has overweight ratings on Facebook, Netflix, Yelp, Match and Amazon.
  • The firm is bullish on Amazon long-term, but is 'cautious' about the stock into the March quarter earnings report.
Netflix on a laptop screen
Jonathan Nackstrand | Getty Images

One of Wall Street's top internet analysts, JPMorgan's Doug Anmuth, put out a note to clients Friday with his best stock ideas for the first-quarter earnings season.

The analyst cited how internet stocks under his coverage are up 10 percent this year versus the 5 percent return through Wednesday.

"We believe underlying trends in online advertising and eCommerce remain strong … Our favorite names remain FB and NFLX among large-caps and YELP and MTCH among smid-caps. As we think about the 1Q earnings setups, we are a bit more cautious on AMZN into print given the strong 14% rebound off mixed 4Q earnings & 1Q guide," he wrote. "AMZN will continue to gain meaningful share of overall eComm & retail—but we still think there is some near-term risk given significant share appreciation and many large-scale, concurrent investments across key areas," the note said.

Here are the details on JPMorgan's five overweight-rated internet stock picks and their 12-month price forecasts.

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