So, you're thinking about internet stocks in the age of AI, and maybe you're a little worried that the whole sector is about to get disrupted by robots and self-driving cars. It's a fair concern. But according to BNP Paribas analyst Nick Jones, who laid out his thoughts on Friday, some of the biggest names are actually sitting pretty for the long haul. The thesis is that despite the evolving risks from artificial intelligence and autonomous vehicles, the fundamentals across key players remain strong.
Let's break down his picks.
Alphabet: The AI Winner in Waiting
First up is Alphabet Inc. (GOOGL). Jones sees the company maintaining its iron grip on digital advertising while picking up serious momentum in cloud as AI adoption kicks into high gear. The thinking here is pretty straightforward: yes, all those AI investments might squeeze margins a bit in the near term, but they're essentially buying a stronger competitive moat around its core businesses—Search, YouTube, and Cloud.
In Jones's view, Alphabet isn't just playing defense; it's positioned to be a long-term AI winner with serious monetization potential down the line. To put a number on it, he's using a 30x multiple on projected 2027 earnings to arrive at a price forecast of $390. For context, Alphabet shares were up 0.80% at $338.71 when this was published on Friday.
Amazon: The Scale and Data Juggernaut
Next is Amazon.com Inc. (AMZN). The story here is about relentless market share gains across its three big engines: e-commerce, cloud (via AWS), and advertising. Jones points to Amazon's massive scale, its data advantage, and its integrated tech stack as the reasons it can keep winning. On the retail side, faster delivery and ongoing logistics investments are key. In cloud, AWS is a powerhouse. And in advertising, it's just getting stronger.
Jones values the stock at $320 using a combined valuation approach that looks at both earnings and operating performance. Amazon shares were up 1.50% at $253.45 at the time of publication.
DoorDash: Delivering Consistency
Then there's DoorDash, Inc. (DASH). Jones views the company as the leading player in food delivery, backed by strong execution, growing user engagement, and international expansion through acquisitions. The expectation is for continued margin improvement and market share gains to support the stock.
He assigns a $275 price forecast, noting that it reflects a premium valuation justified by DoorDash's consistent performance. DoorDash shares were up 2.87% at $184.47 on Friday.
Uber: Not Worried About Robotaxis (Yet)
Finally, Uber Technologies, Inc. (UBER). Here's where the autonomous vehicle risk comes up most directly. But Jones essentially dismisses the near-term threat, expecting Uber to remain a dominant player for years to come. Instead, he highlights growth in both its mobility (rides) and delivery segments, plus increasing adoption of its membership program, as the key drivers.
He also expects steady margin expansion and strong cash flow. Based on its projected earnings multiple, he values the stock at $108. Uber shares were up 1.11% at $77.33 at the time of publication.
The overall takeaway? In a market obsessed with the next big disruption, these four internet giants might just have the fundamentals, the scale, and the strategic positioning to not only survive the AI era but potentially thrive in it. It's a bet on execution over existential threat.
