As 2025 kicks off, investors are feeling bullish about the U.S. Internet sector-and JPMorgan analyst Doug Anmuth's latest survey suggests optimism is running high.
Nearly 100 investors shared their insights, revealing a market eager for tech-driven innovation despite looming challenges.
The Internet Sector's Moment To Shine
Roughly 79% of respondents anticipate market-cap-weighted Internet stocks to climb over 5% this year, outpacing expectations for the S&P 500.
Advances in technology, return on AI investments, and upward earnings revisions are seen as key tailwinds pushing growth forward.
But it's not all smooth sailing-concerns over AI monetization, heavy capital expenditures, and valuation worries persist.
Alphabet Is Still King
Investors overwhelmingly picked Alphabet Inc
Despite AI excitement, Meta Platforms Inc
Uber Takes The Wheel
Uber Technologies Inc
Subscription models and online advertising were highlighted as the top-performing subsectors, with Alphabet dominating the ad race by a wide margin.
GenAI: Big Buzz, Small Bucks?
While 37% of respondents anticipate new Generative AI applications to make waves, only 6% foresee immediate revenue boosts.
Alphabet is seen as the biggest beneficiary of AI advancements, solidifying its position as the market leader.