Buy Facebook and Google, but hold off on Amazon, Bernstein says

Published Thu, Jan 9 20205:42 PM ESTUpdated Fri, Jan 10 20208:31 AM EST

Jesse Pound @/in/jesse-pound @jesserpound

Key Points

Bernstein initiated coverage of Facebook and Google with an outperform rating.
The investment firm initiated coverage of Amazon at market perform, making it one of only a few firms without a buy rating on the stock.
Bernstein cited Amazon's exposure to retail and regulatory concerns as reasons for the rating.

A worker assembles a box for delivery at the Amazon fulfillment center in Baltimore, Maryland, April 30, 2019

Clodagh Kilcoyne | Reuters

Facebook and Google are among the best bets among internet stocks, but slowing retail growth and regulatory issues should make investors cautious about Amazon, investment firm Bernstein said in note Thursday.

Bernstein initiated coverage of Facebook, Uber, Snap, and Google's parent company Alphabet with outperform ratings in its new note looking at internet stocks.

Twitter was the only stock to get an underperform rating, while Amazon, Lyft and Pinterest received a rating of market perform.

This makes Bernstein one of the few firms that is not bullish on Amazon. The tech giant had buy or overweight ratings from 96% of its analysts before this initiation, according to FactSet.