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Here are Jefferies’ favorite internet stock ideas for the next year

Mark Zuckerberg, chief executive officer and founder of Facebook
David Paul Morris | Bloomberg | Getty Images

Internet stocks have crushed the market this year, and one Wall Street firm believes the strong performance will continue.

Jefferies' research team shared its top internet stock ideas in a note to clients Thursday.

"We take a deep dive into the current state of the internet and interactive entertainment sectors, examining themes such as cloud computing, the shift to digital advertising, the convergence of internet & software, e-commerce, online travel and video games," the firm's analysts wrote. "We favor large cap and recommend investors stick with the heavyweights."

The average internet stock in Jefferies' coverage universe has risen 32 percent year to date through Wednesday compared to the S&P 500's 9 percent gain.

Here are four buy-rated companies in the industry recommended by Jefferies, along with the firm's current price targets.

1) Facebook (FB)

Jefferies analyst Brent Thill has a $215 price target for Facebook shares, which is 28 percent higher than Thursday's close.

"Facebook's ~2B+ Global user base is driving incremental ad dollars to its mobile platform. We expect FB to continue to grow robustly as it increases the prominence of video combined with unrivaled data on its user base driving better targeting for advertisers. We highlight under-monetized assets such as WhatsApp and Messenger can provide upside potential."