A new report from Bank of America highlights over 100 catalysts for the second half of 2024. It gives investors key events and stocks to focus on as major indexes trade near all-time highs.
What Happened: As analysts look to set new price targets on market indices for the second half of the year, Bank of America is turning to catalysts that could impact internet and e-commerce stocks.
“New AI products in focus, along with ruling on DoJ-Google case, and updates on potential TikTok ban,” Bank of America says, are among the trends to watch.
Among the large companies with second-half events that could impact their share price and future growth include:
- Amazon.com Inc (NASDAQ:AMZN) and its Prime video ad ramp
- Alphabet Inc (NASDAQ:GOOG)(NASDAQ:GOOGL) and Google’s AI Overviews ramp.
- Meta Platforms‘ (NASDAQ:META) business messaging adoption.
The 2024 presidential election and the pending ban on TikTok without a divestiture of the U.S. arm are also important items to watch that could impact the internet and e-commerce sectors.
“Besides macro, AI remains the top sector sentiment driver,” the firm noted, adding that it prefers “more risk-on stocks” in the second half of 2024. “BofA economists expect cooling inflation, positive GDP growth and lower rates exiting 2024, which could favor stocks with higher beta/risk profiles.”
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Stock Picks: Bank of America highlights seven stocks that could fit the “risk-on” profile and are share gainers in their sectors with potential for margin growth and trade at attractive valuations.
- Amazon: Bank of America picked the Seattle-based e-commerce giant, citing its Amazon Prime Day on July 16 and July 17. The company also hosts its AWS Summit on July 10. “The event is designed to bring together Cloud computing community to connect, collaborate, and learn about AWS. We would expect a big focus on AI products and services,” Bank of America said. Amazon also hosts an AWS customer event in Las Vegas in December 2024.
- Pinterest Inc (NYSE:PINS): Third-party partners, a Google collaboration and new AI-integrated tools are among the catalysts for the second half of 2024. “We expect more material revenues in 2H’24. Overall, we expect $140 million in partnership revenues in 2024,” Bank of America noted
- Wayfair Inc (NYSE:W): The company’s new loyalty program could help win back lapsed customers. Bank of America analysts say the loyalty program could help increase purchase frequency from existing customers. Other catalysts for Wayfair include the opening of its first branded store in Chicago in May. More physical stores are expected, along with the launch of its new “Welcome to the Wayborhood” brand campaign. “The brand campaign could drive higher traffic and share gains through FY24.”
- Uber Technologies (NYSE:UBER): The on-demand car service company has several upcoming events worth noting. This includes partnerships with Costco and Instacart. Uber could also be in the spotlight with Tesla hosting its robotaxi day on Aug. 8. “While there is risk of new competition, less competitive uncertainty following Tesla’s robotaxi day could also benefit Uber and Lyft given overhangs.”
- Vivid Seats (NASDAQ:SEAT): Skybox Drive will launch later in 2024. The ticketing tool will help sellers with pricing insights and real-time pricing adjustments. The tool could be a new source of revenue for Vivid.
- DoorDash Inc (NASDAQ:DASH): Weak traffic in restaurants could lead to delivery growth. Bank of America highlights DashPass, the company’s annual marketing event in June and July, for offering discounts and features and could also see new partnerships announced.
- Applovin Corporation (NASDAQ:APP): The mobile app technology company gets high marks as the company expands into e-commerce advertisements. Bank of America said the expansion could strengthen the bull case for Applovin and lead to higher estimates.
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