Meta, Amazon, DoorDash rank as Citi’s ‘Top-Picks’ across Internet sector

Meta (NASDAQ:META), Amazon (NASDAQ:AMZN) and DoorDash (NASDAQ:DASH) rank as Citi’s “Top Picks” across the Internet sector as these names all head into 2025 in the midst of a multi-year product cycle.

“In many ways, the momentum in 2024 across most Internet sub-sectors should continue into 2025, and this bodes well for our broader coverage,” said Citi analysts, led by Ronald Josey, in an in-depth report. “But for durable outperformance, we look for product led growth, and we believe Meta’s product cycle is one of the deepest with MetaAI and Search, Llama, Agents, and AI engagement and monetization opportunities.”

Citi also highlights Amazon’s investments in essentials, delivery speeds and Amazon Web Services’ generative artificial intelligence products should generate higher margins. Meanwhile, DoorDash’s food delivery demand remains resilient as newer verticals, such as grocery delivery and DashPass, ramp up.

Citi has increased target prices on Meta to $753 from $705 and Amazon to $275 from $252, while DoorDash is set at $211.

For small and mid-cap stocks in this space, Citi rates Reddit (RDDT) and Zillow (ZG) as Top Picks as well.

Citi boosted Reddit’s price target to $200 from $120. The social media site has seen its daily average user rate increase from product initiatives such as Shreddit and Reddit Answers. New advertising automations and newer ad formats are also improving profitability.

Zillow’s price target was bumped up to $95 from $77. Zillow’s new offerings such as RT Touring, Rentals and Follow-Up Boss are helpping drive up market share.