Wall Street Backs Amazon, Etsy, Sees Short-Term Pain for Facebook, Google
By Yasin Ebrahim
Investing.com – Amazon and Etsy are sidestepping the selloff on Wednesday as analysts continue to bet the surge in e-commerce will likely benefit these platforms, but Google and Facebook are likely set for short-term pain as advertisers rein in spending.
Amazon.com (NASDAQ:AMZN) and Etsy (NASDAQ:ETSY) were up 0.41% and 1.6% respectively. Facebook (NASDAQ:FB) and Alphabet (NASDAQ:GOOGL) were both down more than 2%.
With consumers spending more time at home, e-commerce platforms - like Amazon, eBay (NASDAQ:EBAY) and Etsy among others - are seeing "robust" customer demand growth, Canaccord said. This trend could likely continue amid an ongoing relocation of discretionary spending as "consumers spend less on travel and entertainment and instead shift those dollars towards making their homes more functional and comfortable," it added.
The brokerage also singled out meal kit and food delivery companies such as Blue Apron (NYSE:APRN) and Grubhub (NYSE:GRUB) and "stay at home" companies such as Netflix (NASDAQ:NFLX) and Peloton (NASDAQ:PTON) that will likely see incremental demand as a result of the pandemic.
But not all online platforms will benefit from the current pandemic.
Advertising names - Facebook, Google, Twitter (NYSE:TWTR), Snap (NYSE:SNAP) - are seeing "muted demand in the near term, but the pandemic could accelerate digital adoption over time," Canaccord said.
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