While (almost) everyone might use the Internet on a daily basis, not everyone might know companies such as Google Inc (NASDAQ:GOOG) and Facebook Inc (NASDAQ:FB) as in depth as analyst Eric Sheridan. The UBS analyst has been researching and successfully recommending companies in the Internet sector, earning himself the number 99 spot out of 2352 analysts and a 4.9% average return over S&P-500.
Eric most recently recommended BUY Google Inc (NASDAQ:GOOG), arguing the company’s innovation will continue to grow the company’s influence, and has already earned +2.2% over S&P-500. Even now, Eric notes, “Google is still staying true to its roots in its pursuits of disruptive endeavors. As Google continues to innovate, we believe it will increasingly compete with broader teach platforms across a range of businesses.”
Accompanying his BUY rating, Eric raised his price target to $1,300 from $200 noting that, “Googles current investments are focused on repositioning the company away from just a desktop search/advertising business and making it into a more comprehensive digital platform leader through its hardware and software products that target two of the biggest trends in tech: mobile computing and the cloud.” Eric believes, that “investors will be satisfied if Google can either a) maintain flattish margins while producing mid-teens revenue growth; and/or b) provide cash returns to shareholders.” And he believes both outcomes are achievable. Eric is currently up +2.2% on this open recommendation.
At the very end of last year, Eric recommended BUY Facebook Inc (NASDAQ:FB) after noticing a major shift in advertising trends. Eric noted that, “more companies are shifting more of their ad dollars toward performance-based advertising.” He believed, “advertisers will continue to allot bigger and bigger proportions of their ad budgets to real-time bidding ad they try to benefit from better targeting capabilities.” Eric argued that Facebook Inc (NASDAQ:FB) would benefit from this shift in advertising calling Facebook, “one of the most attractive risk/reward stocks for ’14.” Based on his BUY recommendation he earned, +18.3% over S&P-500.
Eric also experienced a few losses, such as his -1.4% return from his BUY Yahoo! Inc. (NASDAQ:YHOO) recommendation in December of 2013. Eric was excited about new hires, Alibaba’s valuation, and the company’s plan for growth, “Based on the content investments in core Yahoo and the positive advertiser commentary on Stream Ad units, we believe Yahoo will be back on the path to revenue growth in 2014 with an acceleration into 2015.” However, despite his positive perspective, Eric lost on this recommendation.
So far, all of Eric’s recommendations about Google Inc (NASDAQ:GOOG) have earned him a positive return. And, while his 69% success rate of recommended stocks accounts for a few losses, his is well on his way to moving up the TipRanks analyst rankings. To continue following his advice, as well as to follow other analyst recommendations, download Tipranks, and start making informed financial decisions today.
