Apple, Facebook Among Top Technology Investment Choices

By | April 8, 2016

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Facebook ( FB ) received honors as the top Internet investment idea by Credit Suisse, followed by Amazon.com ( AMZN ) and Alphabet ( GOOGL ). In tech hardware, Apple ( AAPL ) is a favorite. Credit Suisse based its picks on a six- to 12-month time horizon. Credit Suisse analyst Stephen Ju says Facebook can drive long-term revenue growth without a material lift in ad loads. Near-term ad growth drivers include Facebook’s video- and photo-sharing site Instagram and its premium video, which brings in high ad rates. He says Wall Street’s projections for Facebook are too conservative and underestimate the long-term moneymaking potential of other products, including Messenger and WhatsApp. Ju has a price target on Facebook stock of 135. Facebook stock was down 2.5%, near 110, in afternoon trading in the stock market today . Amazon, Ju’s No. 2 investment, should provide upside to estimates, he says, in part from ongoing strength in e-commerce. Ju has a price target on Amazon of 800. Amazon stock was up a fraction Friday afternoon, near 593. Ju expects Alphabet to narrow the monetization gap between mobile and desktop, while increasing ad loads. He also expects Alphabet to get strong growth from YouTube and its Google Play app store. His price target on Alphabet stock is 930. Alphabet stock was down a fraction Friday afternoon, near 756. Regarding Apple, Credit Suisse analyst Kulbinder Garcha rates it a top investment idea, saying multiple growth drivers include its strength with the iPhone, iPad and Mac computer and greater adoption of the iOS ecosystem. Another is Apple’s commitment to cash distributions. Garcha has a price target on Apple of 150. Apple stock was trading above 128, up a fraction, Friday afternoon. Scalper1 News

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