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Citigroup Internet Research Managing Director Mark Mahaney on the Internet stocks investors should consider for their portfolios.
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-- flashy social media stocks like Groupon and FaceBook have as you know been performing pretty poorly in the markets get the Internet analyst mark Haney says -- -- still money to be made in online stocks he is the number one analyst for the sector and he joins us now.
All right you like the -- what we would call like guess -- -- more traditional companies what I they have why do you like them.
Yeah it's funny that you call on traditional Internet IP company but -- -- where they are you know.
Let's listen you know little a little bit of gray hair there they -- so look these names that we like we like Priceline.
A Google and Amazon now I would vibe like those stocks at different times over the years but.
Particularly like come right here Priceline you've got stock -- corrected recently on European macro concerns.
We think there's so still very clear international runaway growth story for that name Google continues to dominate search and display advertising assets like you -- -- anomaly while for the name.
And that Amazon you continues to take market share gain in day out an online retail and you've got new candles and you've got Amazon Web Services all three stories are attacked we like him in that order though -- global.
Amazon this is a funny for those of us mark good to see you -- who covered the dot com.
Bubble filling in that bursting at it was Priceline which was considered one of the sort of a fly by nights because.
Never think at that 33 for one reverse stock -- unarmed getting it Robert so crazy at the time.
Look at it today so so -- don't actually have to believe though that travel is going to come back in a meaningful way I mean what is really behind here.
Positivity about press want.
Yeah no absolutely travel comes back up.
Arguably their parts of the world like Europe where it travels more of a fixed expenditure rather than a consumer discretionary.
I spend item.
So for Priceline still well well positioned across Europe and 45% -- bookings international air out of Latin American Asia Pacific it's a good global distribution.
Company I mean they've got 70% of their bookings from.
Outside the US is the most global company and I frankly that I cover he also -- a good point -- Liz I think you're applying.
It is interesting.
-- Priceline did from the ashes did reinvent itself yeah it raises the question whether Groupon could potentially do that to from the ashes of those they have to be a lot of changes just like -- -- with Priceline.
I say -- Priceline but you don't like Monster Worldwide do you why.
Well there's there's one mistake that investors have made including myself in the Internet space over the last 1015 years.
It's been competitive -- secular growth opportunities from my travel retail advertising they've all kind of been what people fog in fact probably greater than people thought over time.
When the competitive -- would be -- chance for Google to come in and undercutting Yahoo! or in this case a Linkedin to come in and -- undercut a Monster Worldwide.
Is very present and I think that's exactly what we're seeing with monster too much competitive risk especially coming from Lincoln who.
Mark we love having you want because you vote of very realistic and strong sense of of what's working what doesn't that would when you just brought up preponderance of that -- to make a lot of changes.
This was a company that had a seven billion dollar offer to be outright bought by Google of looking -- with some hindsight 20/20 but.
Should they have taken that deal.
Is this just something that nobody anticipated that it will be a lot harder is a publicly traded company to prove to investors how you make money.
I think it's a lot harder for the company period regardless of whether it's public or private.
What seems to be happening is that that daily deal market that world was really saturated with you know twelve months ago six months ago.
The growth there is really slow down that market is really matured -- it's become saturated a lot faster than certainly the company.
But also most public investors thought was was possible to bringing in new revenue streams but it just not coming in fast enough.
To offset the slow now of the slowness in the core bit business so yes I'm sure -- -- tape turned back though the wheels time.
They would taken that six to seven billion now bid from Google.
It's good to see you market yeah how did you think that don't you wish right mark OK great to see you thank you so much --
