Nothing But Net In 2008 - JP Morgan
JPMorgan’s Internet analyst Imran Khan and his team released a massive 312-page report this morning titled Nothing But Net that paints a bullish picture for the major Internet stocks (Google, Amazon, Yahoo, eBay, Expedia, Salesforce.com, Ominiture, ValueClick, Monster.com, Orbitz, Priceline, CNET, etc.). Apart from the prediction for online search, other takeaways include:
- 34% earnings growth in 2008 for the Internet stocks it covers versus 8% earnings growth for the S&P 500.
- Advertising revenues to outpace the adoption of broadband.
- The U.S. graphical ad market to hit nearly $8.6 billion this year–a 20% increase from 2007, with much of it being driven by costlier CPMs. This is expected to be driven by improvements in behavioral and geographical targeting, and the increased use of ad exchanges among other things.
- Yahoo! reckoned to be the leader in 2008 - forecasted to snag 10% of the $20 billion global graphical ad market. MSN is slated to snag roughly 7.2%, while AOL and CNET will own 5% and about 2% of the global display market, respectively.
Here’s a post on TechCrunch which has some graphs on these.
At the same time, as this article in the Wall Street Journal says, Merrill Lynch predicts overall ad spending in the U.S. for 2008 to grow 2.3%, while the portion of that spending on the Web would increase 18%.
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