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 (NASDAQ: GOOG) (NASDAQ: GOOGL) as the best-performing Mega Cap stock of 2025, with 43% favoring it over rivals.
Despite AI excitement, Meta Platforms Inc (NASDAQ: META) isn't getting much love, with 46% pegging it as the year's weakest link among the Magnificent Seven stocks.
Uber Takes The Wheel
Uber Technologies Inc (NYSE: UBER) emerged as the investor favorite among large-cap stocks, expected to outpace its peers in the ride-share and food delivery space.
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.