67 WALL STREET, New York - May 21, 2014 - The Wall Street Transcript has just published its Internet Services Report offering a timely review of the sector to serious investors and industry executives. This special feature contains expert industry commentary through in-depth interviews with public company CEOs, Equity Analysts and Money Managers. The full issue is available by calling (212) 952-7433 or via The Wall Street Transcript Online.
Topics covered: Increased Mobile Content Traffic - Chinese Online Monetization Trends - Social Networking Economics - Chinese Internet Market - Mobile Monetization - Internet Content Providers - Data Security
Companies include: Amazon.com Inc. (AMZN), Google Inc. (GOOG), Wal-Mart Stores Inc. (WMT) and many others.
In the following excerpt from the Internet Services Report, an expert analyst discusses the outlook for the sector for investors:
TWST: Who do you like right now in terms of the companies you cover?
Mr. Sena: I like companies that are creating a very healthy marketplace dynamic, and I think that Amazon is one. The company is very consumer-centric, but when you look at the amount of volume that goes through their platform, trades at a discount, I'd say, even to Wal-Mart (WMT). It's growing much faster, and it has the potential for margin leverage. A lot of investors think that earnings per share are too low. That's true, there really are no earnings per share right now. But you have to believe in terms of the fact that you still have a strong grower, you still have huge addressable markets, you have a competitive barrier and the opportunity to essentially expand their margins as they move from first-party to third-party. Over time, all those things kind of point to I think a much better earnings per share story at a few years out. So that's one I really like.
We also like Google (GOOG) , obviously. I think that Google is doing a lot in terms of its core categories, but it is also quickly expanding to new verticals around local because that provides high revenue, as well as branded advertising, like giving YouTube, so that will be another one.
I also liked Twitter (TWTR) or LinkedIn (LNKD). I think these are also businesses that have strong marketplace models and that they can pay. They're basically sold off quite a bit in recent months, and I think it could be a good opportunity for folks.
TWST: Periodically we hear that these companies are too big, verging on monopolies, and that they should be broken up. What is your take on that?
Mr. Sena: Google or Amazon can stand behind the fact that they put the consumer first. Typically, regulations are aimed to protect the consumer. So if they are saying we want to give the consumer more choice, more speed, better pricing, then what's there to complain about? And you could argue that there are social implications in terms of are you working in an Amazon factory, right, versus working on a main street? And the differences in quality of living, etc., from that, I don't know. But at least in terms of consumers who are using your platform, Amazon could argue that they are getting a better experience from that scale. So they are using it in a very proconsumer fashion.
TWST: For investors interested in the space, what do you think are the most important things they should be watching over the next year or so?
For more of this interview and many others visit the Wall Street Transcript - a unique service for investors and industry researchers - providing fresh commentary and insight through verbatim interviews with CEOs, portfolio managers and research analysts. This special issue is available by calling (212) 952-7433 or via The Wall Street Transcript Online.