There are sectors that are difficult for an analyst to cover, then there are sectors that are really difficult to cover, and the Internet sector falls into the second category. Ygal Arounien, which covers several issues in this industry for Wedbush Securities, joined the “PreMarket Prep Plus” show on Wednesday to discuss some issues in its area of coverage.
E-commerce: In this space, one of Arounian’s choices is BigCommerce H Inc. (NASDAQ: BIGC) Arounian considers its valuation to be “at or near trough”. He is encouraged by the wide expansion of e-commerce as well as the increase in overall retail spending in recent years and expects this to continue in 2022.
Going forward, he expects businesses to continue to expand their e-commerce operations, especially “mid-sized businesses”. This will add to the company’s “top-line growth” and its “unique product fit” will provide solid “long-term opportunities,” he told Benzinga.
he favors Alphabet Inc. (NASDAQ: GOOG) (NASDAQ: GOOGL), which has been able to navigate Apple’s changes thanks to its enormous “search” capabilities. In addition, the company’s YouTube division “has a long growth track” which is still in its infancy, the analyst said.
Real estate technology: Although technology has changed the landscape for many businesses, Arounian suggests that the real estate industry is still in “the early stages of disruption.”
One of the catalysts for the future of the industry as a whole is that the housing market has cooled in recent months and the ‘cyclicality of the industry’ will be positive, he said. .
Arounien identified Zillow Group Inc. (NASDAQ: Z) as a potential leader in the growing industry. He acknowledged that the rate hike may be a negative catalyst for the industry, but predicts that “the housing market will continue to experience strong demand.”
Another positive catalyst is the way “technology is changing the biggest asset class in America”. Not only has technology made it easier to find real estate, but the “ease of how transactions can be done is still in its infancy,” the analyst said.
The full discussion of Wednesday’s show can be found here:
Photo courtesy of Zillow.