JPMorgan has a clear message for investors looking beyond the mega-cap tech giants: there's plenty of opportunity in the smaller corners of the consumer internet world. The bank's analysts just took a fresh look at seven SMID-cap companies in the space, and while they're sticking with their big-picture favorites, they've also found three new names they think are worth a closer look.

Let's start with the names JPMorgan already loves. Shopify Inc. (SHOP) and Take-Two Interactive Software Inc. (TTWO) remain the bank's highest-conviction consumer technology investments, both staying on its U.S. Equity Analyst Focus List. These are the picks JPMorgan is most confident about for the long haul, and nothing in this latest research changes that.

But the real news here is the new coverage. JPMorgan initiated Overweight ratings on three companies: Clear Secure, Inc. (YOU), Xometry, Inc. (XMTR), and EverQuote, Inc. (EVER). At the same time, it started Neutral ratings on Match Group, Inc. (MTCH), Roku, Inc. (ROKU), Frontdoor, Inc. (FTDR), and MediaAlpha, Inc. (MAX).

So what's driving JPMorgan's enthusiasm? It's not one single factor, but a combination of trends that these companies are riding: artificial intelligence, digital transformation, and the ongoing expansion of online marketplaces. The bank sees these as powerful tailwinds that can help these businesses gain market share in large addressable markets while improving profitability.

JPMorgan's Five Favorite Consumer Tech Stocks

Let's break down why JPMorgan likes each of its top picks, starting with the two it already had on its list.

Shopify: This one's no surprise. JPMorgan continues to rank Shopify among its highest-conviction consumer internet investments, keeping the e-commerce platform on its U.S. Equity Analyst Focus List. The firm views Shopify as one of its preferred ways to play the ongoing digitization of commerce. In other words, as more and more retail moves online, Shopify is the pickaxe seller in the gold rush.

Take-Two Interactive: The video game publisher also stays on the Focus List. JPMorgan's confidence here is about the long-term growth story in gaming, and Take-Two is one of its favorite ways to tap into that. It's a bet on the enduring appeal of interactive entertainment, and JPMorgan is sticking with it.

Now for the new Overweight ratings, each with a specific price target and a clear thesis.

Clear Secure: This is the company behind the Clear biometric identity verification service you might have seen at airports. JPMorgan upgraded Clear to Overweight, citing multiple growth drivers: expanding airport penetration, corporate memberships, international expansion, and new premium offerings. The bank set a December 2027 price target of $55, which implies roughly 27% upside from the stock's recent price of $43.29.

There's also a specific catalyst here: JPMorgan estimates that Clear's renewed partnership with American Express Co (AXP) could add roughly $140 million in incremental annualized bookings. Add to that continued pricing gains and higher adoption of services like Concierge and TSA PreCheck enrollment, and you have a recipe for revenue growth and margin expansion.

Xometry: This is an online marketplace for custom manufacturing, and JPMorgan is bullish on it. The bank says Xometry is well positioned to benefit from the continued shift toward digital procurement in the custom manufacturing industry. Its December 2027 price target of $120 implies about 44% upside from the stock's recent price of $83.59.

What's driving that optimism? JPMorgan points to AI-driven product improvements, growing enterprise adoption, international expansion, and a partnership with Siemens. These catalysts could support revenue growth above 30% through the second half of the year, before settling in above 20% in 2027. That's a pretty strong growth trajectory.

EverQuote: Rounding out the SMID-cap picks is EverQuote, an online insurance marketplace. JPMorgan highlights improving insurance-industry fundamentals, growing digital advertising budgets, and expanding AI capabilities as key drivers. The bank's December 2027 price target of $29 represents roughly 15% upside from the stock's recent price of $25.24.

The thesis here is that EverQuote continues to gain market share as insurers increase their online spending. The company's AI-powered marketing tools and partnerships should support higher conversion rates and long-term revenue growth. It's a bet on the digitization of insurance, and JPMorgan thinks EverQuote is one of the best ways to play it.

The Common Theme

So what ties these five companies together? On the surface, they're in very different businesses: e-commerce, gaming, airport security, manufacturing, and insurance. But JPMorgan sees similar characteristics driving its bullish stance across all of them.

The bank favors businesses that benefit from secular digital transformation, AI-enhanced products, expanding addressable markets, and improving operating leverage. Those factors underpin its continued confidence in Shopify and Take-Two, while also supporting the new Overweight ratings on Clear, Xometry, and EverQuote.

For investors looking beyond the mega-cap tech names, JPMorgan's latest research suggests there are still opportunities in a diverse group of companies that are using technology to modernize industries. Whether it's e-commerce, manufacturing, travel, or insurance, the common thread is that these companies are leveraging tech to gain an edge.

Of course, it's worth remembering that these are just analyst opinions, and the market can be unpredictable. But when a major bank like JPMorgan puts its stamp on a group of stocks, it's worth paying attention to the reasoning behind it. The key takeaway? Don't overlook the smaller players in the consumer tech space. They might just be the ones with the most room to grow.