BMO initiated research coverage on 25 stocks spanning diverse subsectors such as digital advertising, e-commerce, online travel, advertising/marketing-tech, and interactive media.
According to analysts, a key theme to monitor in 2024 and beyond is the convergence of these subsectors and the corresponding stock implications resulting from the widespread adoption of artificial intelligence.
In the digital advertising realm, analysts noted that TikTok gained momentum in 2021, but YouTube and Instagram have narrowed the gap through short-form video content. Here, BMO initiated Outperform ratings for Google (NASDAQ:GOOGL), Snap (SNAP), and Pinterest (NYSE:PINS), while assigning Meta Platforms (NASDAQ:META) a Market Perform rating.
In e-commerce, Amazon's (NASDAQ:AMZN) Same-Day capabilities contribute to its competitive advantage, leading BMO to initiate an Outperform rating.
For online travel, BMO favors Booking (NASDAQ:BKNG) and Expedia (NASDAQ:EXPE). AdTech shares surged in 2023, and BMO notes favorable prospects for 2024 but acknowledges challenging comparisons in 2H.
“We believe 2024 will be a breakout year for AdTech shares, especially GOOGL, TTD and DV which look well-positioned to capitalize on the US presidential election,” analysts said.
“We think Google looks like the primary beneficiary for digital election ad dollars given META will be under intense scrutiny given the widespread view Facebook was used to spread disinformation during the 2020 election.”
On the AI front, analysts see GOOGL as best positioned, as well as AMZN. Meta trails both despite the belief that it “has effectively integrated AI across its family of apps via enhanced content and recommendation engine.“