Morgan Stanley Sees Major Growth for Google, Amazon, Netflix in 2019 and Beyond
Morgan Stanley (NYSE:MS) issues an annual update every year that includes stocks its sees positive long term growth for in the coming year or two. Today the bank added Google's parent company Alphabet Inc (NASDAQ:GOOGL), Amazon Inc (NASDAQ:AMZN), and Netflix Inc (NASDAQ:NFLX) to its 'Secular Growth Stocks' list.
The list, comprised of 25 stocks, is assembled by Morgan Stanley's equity research group and the key here is that these stocks are expected to outperform the market independent of global macro economic factors. Factors such as a further-escalating economic spat between China and the United States centered around import tariffs.
Worthwhile mentions that did NOT make the cut are Apple and Microsoft, together our topic of discussion from yesterday. While there is indeed a slight increase in bears covering Apple, Microsoft seems poised for continued growth, very similar to the reasons why Amazon made the list, so the omission here is curious indeed. Both companies are looking to continue driving the cloud computing market outwards in terms of that industry's top-line.
The bank's equity strategy division reported that they see 2019 similar to 2018, as a continuation of the consolidation we witnessed twice this year. The firm also noted that, "characterized by disappointing growth and a much narrower range of valuation,". In other words, MS doesn't see 2019 as a big year for the stock market.
The tech sector, both semiconductors as well as other software or social platform firms like Facebook, Snapchat, and many others, recently went through a major sell-off back in September and through October. Recently, a rally has been underway as companies like NVIDIA lead the charge. For investors in tech, its a least slightly reassuring that a major bank like Morgan Stanley sees continued growth for technology pillars Amazon, Google, and Netflix. Of course, with time we will see how accurate Morgan Stanley's forecast is.