In 2017, internet stocks dominated. According to JP Morgan (JPM  ), 2018 will see their rise continue, as fundamentals will persist with strength in both e-advertising and e-commerce.

Two favorite stocks for 2018 include Netflix (NFLX  ) and Facebook (FB  ). Netflix remains the top growth pick for 2018, as people believe its subscriber base will continue expanding, with some predictions claiming that it will nearly double from 100 to 200 million by 2021. JP Morgan believes that Netflix's disruption of linear TV will continue to progress, buffeted by its ever-expanding base of high quality original content. As for Facebook, experts have set a $225 price target for shares by December 2018. This optimism is based on Facebook's strong ad revenue growth, earnings beats, and significant number revisions in 2017. Experts also look towards Facebook's potential to monetize the Instagram platform.

On the other hand, JP Morgan is not so optimistic about Tesla (TSLA  ), and advises investors to bet against it on the prediction that Tesla is likely to raise more capital, diluting its stock. Tesla also faces increased competition from other car makers looking to branch out into electric cars, some of which seek to "reap benefits from government subsidies." Increased competition presents a major threat, as many other companies price their electric vehicles to subsidize their companies' existing portfolios from a legal and regulatory compliance perspective, rather to turn a robust profit. Tesla is likely to be left out in the cold should its competitors drive the market price point for electric cars down below Tesla's reach.

© Tesla

Tesla's 2018 agenda includes improving its Model 3 production, though observers are not certain it can achieve this in time, given its failure to live up to targets in 2017. In November, Tesla cut the number of Model 3 vehicles it will deliver from 10,000 to 1,000, a warning sign for investors. Morgan Stanley also predicts that Tesla will lose $1 billion "at the operating level" in 2018, culminating with a shift from profits to losses within the next three years. The patterns of rampant optimism followed by growing despair has been recurrent in its company history. Famous investors have even predicted that they expect its CEO, Elon Musk, to abandon the company entirely by 2020. Tesla's 2017 record contains a drop of approximately $4.1 billion in the first three quarters of the year. Overall, Tesla's stock has lost a fifth of its value since September. One of Tesla's major rivals, General Motors (GM  ), has received a favorable prediction estimate for 2018. Shares of General Motors have been up 24% since January.