Those are among the conclusions of a report late Tuesday from RBC Capital Markets analyst Mark Mahaney on the state of the industry during the first quarter of 2019.
Three stocks—Snap (ticker: SNAP), Amazon.com (AMZN), and eBay (EBAY)—carry with them the highest quarterly expectations for different reasons, according to Mahaney. He cites Snap’s improving revenue and narrowing losses; Amazon’s forays around Video, Prime, and international market investments, as well as growing demand for Amazon Advertising; and eBay’s new strategic initiatives that includes reorganizing its business units.
Longer-term, RBC sees value in Facebook (FB), as its Stories and Instagram properties ramp up monetization efforts; Netflix (NFLX), whose “unusually robust content slate” is expected to drive an increase in paid subscriptions; and Expedia Group (EXPE), whose bookings have remained consistent.
The least-risky stocks? Netflix, Amazon, and Twitter (TWTR), which has consistently exceeded revenue and Ebitda guidance largely through improved user and advertiser experiences, Mahaney writes.
The prognosis, however, is not as good for a couple of travel-related sites and Alphabet ’s (GOOGL) Google, according to the RBC note.
TripAdvisor (TRIP) faces headwinds in foreign-exchange markets and RBC’s online travel survey suggests some risk in the stock for fiscal 2019. Uncertainty in the European travel market could also dog Booking Holdings (BKNG).
Google, too, could face negative foreign-exchange issues as it navigates regulatory issues both abroad and in the U.S. The company is reportedly considering changes to third-party ad-targeting to mollify privacy advocates and lawmakers.
Google has not commented on the report.