Alphabet’s (GOOGL) Google and Facebook (FB) could be thought of as the “arms dealers” to the struggling retail industry in their battle not to be totally decimated by Amazon (AMZN), according to a piece put out today by Credit Suisse’s Stephen Ju, who follows the stocks of all three names.
Amazon’s stock was the “first to receive sponsorship from consumer- and retail-sector investors,” notes Ju, and he concludes that means “Google and Facebook should be next” to pick up the attention of investors in the retail sector.
“Among the Internet megacaps, as AMZN shares are the more straightforward choice to retain consumer exposure, we submit that both GOOGL and FB should receive greater consideration as ‘weapons dealers’ to a retail sector looking to promote not only foot traffic but also their e-commerce operations as well.”
He sees advertisers, for one, continuing to spend on Google’s YouTube:
Our conversations with advertisers during 2Q17 suggest ongoing strength in budget deployment across search and YouTube based on the following factors: 1) ongoing ramp in mobile search traffic, 2) CPC benefits from Expanded Text Ads and the elimination of Enhanced Campaigns, 3) location based targeting, opening up opportunity to drive offline activity, 4)…