Wall Street Stock Experts Cheer for These 5 Stocks: Should You Invest?

Choosing the right stock can be tough, especially when the economy and earnings are all over the place. One smart move is to pay attention to what the experts on Wall Street are saying. They study companies and can help us make better stock decisions.

That’s where TipRanks comes in. It’s like a rating system for these Wall Street experts. They’ve picked out five stocks that these top experts really like. We’re going to take a closer look at these stocks to see why the experts are so keen on them. Let’s find out more about these stocks below.

Amazon (AMZN Stock)

This week’s first choice is Amazon (AMZN), a giant in both e-commerce and cloud computing. In the recent quarter, Amazon exceeded expectations for earnings and saw a return to double-digit revenue growth.

amazon stock | price | value | buy

According to DBS analyst Sachin Mittal, Amazon’s retail segment, which had faced losses due to various challenges for seven consecutive quarters, finally turned a profit in the second quarter. Mittal predicts that this retail segment will play a significant role in driving up Amazon’s stock price in the coming years.

Mittal also highlighted Amazon Web Services (AWS), which holds a substantial 32% share of the global cloud infrastructure market and is Amazon’s most valuable business. Interestingly, while AWS contributed to only about 17% of Amazon’s total revenue in the second quarter, it accounted for a whopping 70% of the company’s profit.

In light of these factors, Mittal raised his price target for Amazon from $150 to $175 and maintained a buy rating for the stock. He emphasized Amazon’s strong position in e-commerce, its dominance in cloud computing through AWS, and its potential for robust growth in online advertising. Mittal believes that more advertisers are turning to Amazon’s retail media network to navigate challenges posed by Apple’s privacy changes and connect with shoppers.

Mittal’s track record on TipRanks ranks him at No. 744 out of more than 8,500 analysts. His ratings have succeeded 75% of the time, delivering an average return of 18.4%. (For further insights into Amazon’s insider trading activity, refer to TipRanks.)

AppLovin (APP Stock)

The mobile app tech platform, AppLovin (APP), recently made quite an impression on Wall Street. They didn’t just meet second-quarter earnings expectations; they actually exceeded them! What’s more, their revenue guidance for the third quarter turned out to be better than what everyone expected.

AppLovin stock | price | value | buy

After taking a close look at AppLovin’s Q2 results, Goldman Sachs analyst Eric Sheridan got pretty excited. He bumped up his price target for AppLovin from $25 to $50 and stuck with his buy rating. What caught his eye was how AppLovin’s software platform had evolved, and this led to more money coming in and better profit margins. All of this happened because the industry trends were looking up.

Sheridan also updated his financial estimates to reflect the fact that AppLovin is expected to make more money thanks to their new artificial intelligence (AI)-based advertising engine, Axon 2.0.

Even though there are some concerns about how unpredictable things can be in the advertising and gaming world right now, Sheridan is still feeling optimistic about this company’s stock. He’s thinking long-term, believing that all the different businesses under AppLovin are going to grow faster than most others in the industry. And he’s also counting on them having strong profit margins as things get better in the world of mobile ads and gaming.

By the way, Sheridan ranks 188th out of more than 8,500 analysts on TipRanks. His track record shows that his ratings have been successful 61% of the time, with an average return of 13.3%. (If you want more details, you can check out AppLovin’s stock chart on TipRanks.)

Datadog (DDOG Stock)

This week’s list of Goldman Sachs analysts brings us Kash Rangan, who stands out as a steadfast advocate for Datadog (DDOG). Even in the face of Datadog’s somewhat underwhelming revenue projections for the third quarter, along with a trimming of their full-year revenue outlook, Rangan maintains an optimistic outlook.

Datadog stock | price | value | buy

The cause for concern among investors stems from a slowdown in spending by Datadog’s larger clients and a less vigorous pace of net new enterprise additions, with only 80 in Q2 2023 compared to 130 in the previous quarter. However, Rangan isn’t swayed by these short-term fluctuations.

What captures Rangan’s attention is the impressive performance Datadog displayed in the second quarter. He highlights a substantial increase in remaining performance obligations (RPO), which soared by 42% year-over-year, significantly surpassing the 33% growth recorded in the first quarter. This upswing in RPO can be attributed to larger deal sizes and extended contract durations.

With conviction, Rangan reaffirms his buy rating on DDOG stock and sets a price target of $114. He emphasizes that his long-term thesis for Datadog remains unshaken. He contends that Datadog maintains a competitive edge as an end-to-end observability platform, a status validated by product consolidation driving substantial deal sizes.

Moreover, the analyst underscores the robust stickiness of Datadog’s products, their expanding reach within the market, and a continuous stream of product innovations as key factors underpinning his optimism.

To provide further context, Rangan ranks 601 out of over 8,500 analysts tracked on TipRanks, an indicator of his experience and credibility. Additionally, an impressive 58% of his ratings have yielded profits for investors, boasting an average return of 8%. So, his resolute stance on Datadog carries weight and reflects a measured analysis of the company’s potential. (For additional insights, you can explore Datadog’s Blogger Opinions & Sentiment on TipRanks.)

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Royal Caribbean (RCL Stock)

Turning our attention to the high seas, Royal Caribbean (RCL) is making waves in the cruise industry. Buoyed by pent-up wanderlust, the company recently upped its full-year expectations and unveiled blockbuster second-quarter earnings. It’s riding the crest of strong demand for travel experiences that have been eagerly awaited.

Royal Caribbean stock | price | value | buy

Enter Tigress Financial’s perceptive analyst, Ivan Feinseth. He’s not just reiterating a buy rating on RCL; he’s cranking up the excitement by raising his price target from $102 to a heady $139. Why the enthusiasm? Well, Feinseth sees RCL as a titan in the cruise world, perfectly poised to reap the rewards of post-pandemic consumer spending refocused on travel and experiences. And here’s the kicker: North America is the treasure chest of demand.

But there’s more. Feinseth has his eye on RCL’s trump card—the “Perfect Day at CocoCay” private island resort. He believes this oasis will not only set RCL apart from the competition but also supercharge their revenue growth and yields, taking cruising to a whole new level.

Adding to the intrigue, Feinseth highlights RCL’s solid financial foundation and surging cash flow. These resources are like wind in the sails for the company, propelling fleet expansion, upgrades, growth initiatives, and strategic balance sheet enhancements.

For perspective, Ivan Feinseth is no small fish in the analyst sea; he ranks 266th among more than 8,500 analysts on TipRanks. His track record speaks volumes: 59% of his ratings have churned out profits, with an average return of 11.8%. So, when Feinseth sets his sights on Royal Caribbean, it’s worth paying attention. (For a deeper dive, you can explore RCL’s Financial Statements on TipRanks.)

Netflix (NFLX Stock)

Our spotlight this week turns to the streaming giant, Netflix (NFLX). While their second-quarter earnings report was upbeat, it didn’t quite hit the revenue mark set by analysts. This resulted in a dip in NFLX shares. But amidst the fluctuations, JPMorgan’s insightful analyst, Doug Anmuth, is standing firmly by his buy rating, setting a price target of $505.

netflix stock | price | value | buy

Anmuth pinpoints the areas that have been causing some investor jitters, notably the strategy around monetizing paid sharing and the timeline for boosting average revenue per membership. Although the pace of paid sharing monetization is slower than Anmuth initially projected, he remains optimistic about its long-term potential. He foresees Netflix capitalizing on a substantial portion of the over 100 million password-sharing users worldwide. By the end of this year, he anticipates 18.8 million monetized users, with projections climbing to 31 million by the close of 2024 and an impressive 38 million by the end of 2025.

But that’s not all. Anmuth, ranked 92nd among more than 8,500 tracked analysts on TipRanks, believes that advertising will evolve into a more substantial and dependable revenue stream for Netflix in the future.

In his view, Netflix stands as a major beneficiary of the ongoing upheaval in traditional TV. He points to the recent launch of Netflix’s ad-supported tier, coupled with the broader rollout of paid sharing initiatives, as key drivers for re-energizing subscriber and revenue growth. Plus, these moves are expected to bring in high-margin incremental revenue.

To put Anmuth’s perspective into context, his track record boasts a 61% success rate, and his ratings have historically delivered an average return of 17.1%. So, when he places his trust in Netflix’s future, it’s worth taking note. (For deeper insights, you can explore Netflix’s Hedge Fund Trading Activity on TipRanks.)

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