A few internet names are on fire, Citigroup's Mark May said Tuesday after initiating coverage on the sector following the closing bell.
"Every stock except one has a P/E below 20," he said. "It's a good group to look at."
That one stock was rated a "sell."
"Google is just one of the best companies in the universe," he said.
May noted the company's positioning in mobile and video, as well as its growth rate of "20 percent-plus growing at a 6 percent free-cash-flow yield."
Amazon.com was also rated a "buy," with $340 price target.
May said that he wasn't looking at the company on a sum-of-the-parts basis, but noted that like eBay, it had a cloud computing component – Amazon Web Services – that was "on fire."
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