Later Tuesday Citigroup (NYSE:) Analyst Ronald Josey started coverage on six stocks, then assumed coverage coverage on fifteen stocks within the North American Internet industry, their top choices being Amazon.com, Inc. Snap Inc . (NYSE:), Airbnb, Inc.

The analyst sees multiple vectors ahead for sustained growth for the sector as consumer engagement online continues to be more immersive and grow, but also recognizes the heightened volatility over the past several quarters, given debates on what the new-normal looks like post-COVID, the longer-term impact of Apple’s ATT changes, greater regulatory scrutiny, and increasing macro fears.

The brokerage added Amazon.com to its NAM Focus List given the company’s leading position in eCommerce, Online Advertising and Cloud – the three of the largest secular trends across the Internet, as well as its view of improving operating efficiencies. Although the broker recognizes the fact that increasing transportation costs could impact margins short-term, it feels the company can benefit from better operational efficiencies in its Fulfillment Centers. It also believes the closure of certain physical retail locations and the lapping COVID-related labor shortages.

The analysts believe Snap is executing extremely well across its core product and monetization opportunities, emphasizing that the company’s DAUs grew over 20% for 5 straight quarters and its Advanced Conversion tools helped it recover (still recovering) more quickly from Apple’s ATT changes relative to its social networking peers.

Airbnb, according to the brokerage is leading the Alternative Accommodations Market. The company believes that Airbnb has made it easier for customers to find alternative accommodation and will continue to grow its business. The company believes it is well placed to profit as the global travel market recovers by 2022.

Analysts believe DoorDash has the potential to grow its market share in U.S. food delivery, and expand to services like Quick Commerce and Drive.

By Davit Kirakosyan