Top FAANG Bets for 2024: Analyst Picks Alphabet and Amazon, Eyes GenAI Revolution
Portfolio Pulse from Anusuya Lahiri
Needham analyst Laura Martin favors Alphabet Inc (GOOG/GOOGL) and Amazon.Com Inc (AMZN) as top FAANG picks for 2024, citing potential ad spending rebounds, political ad spending, and benefits from GenAI. GOOGL plans to deprecate cookies in Chrome, which may disrupt the digital ad landscape, but not GOOGL itself. Both GOOGL and AMZN are rapidly adopting Generative AI tools, which could boost their ROIC growth. Martin predicts U.S. companies will gain market share in the EU by leveraging GenAI to reduce costs. She also highlights AMZN's strategic pivot to BtoB services and its competitive advantages. Martin raised AMZN's price target to $175 and reiterated GOOGL's at $160, with a Buy rating for both. GOOGL stock has gained 59% YTD, and AMZN 79% YTD.
December 22, 2023 | 7:04 pm
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POSITIVE IMPACT
AMZN is Laura Martin's second-highest-ranked FAANG stock for 2024, with a raised price target of $175, due to GenAI advantages and a strategic pivot to BtoB services.
AMZN's increased price target, the emphasis on GenAI, and the pivot to BtoB services are significant factors that could lead to a positive short-term price movement.
CONFIDENCE 85
IMPORTANCE 90
RELEVANCE 95
POSITIVE IMPACT
GOOG is favored by analyst Laura Martin for 2024 due to expected rebounds in ad spending and benefits from GenAI, with a maintained price target of $160 and a Buy rating.
The positive outlook on ad spending and the strategic advantage in GenAI are likely to be viewed favorably by investors, potentially driving the stock price up in the short term.
CONFIDENCE 80
IMPORTANCE 85
RELEVANCE 90
POSITIVE IMPACT
GOOGL is set to benefit from ad spending rebounds and GenAI adoption, with analyst Laura Martin reiterating a $160 price target and a Buy rating.
GOOGL's strategic moves, including the deprecation of cookies in Chrome and the adoption of GenAI, along with a stable price target and Buy rating, suggest a positive short-term impact.
CONFIDENCE 80
IMPORTANCE 85
RELEVANCE 90