The analysts at Credit Suisse recently released a playbook explaining how investors need to look at the growth factor. In its Internet category, the analysts particularly pin pointed companies like Vipshop Holdings Ltd – ADR (NYSE:VIPS), Visa Inc (NYSE:V), ARM Holdings plc (ADR)(NASDAQ:ARMH), Facebook Inc (NASDAQ:FB) and Amazon.com, Inc.(NASDAQ:AMZN).
In 2015, according to the playbook, Amazon performed better than the expectation (an increase of 75%), while the least performing Internet company was Vipshop which dropped down by 10%.
Vipshop performance in the category of Internet space
The companies mentioned above have stocks that display strong quality, sales, momentum and earnings. These names were identified in the Internet space category by Richard Kersley, an analyst at Credit Suisse.
Another analyst from the company, Evan Zhou explains that Vipshop Holdings Ltd – ADR had the capacity of having an upside by 40% from its present price. The company can play with Dragon in mind. With the peak season ahead, Vipshop Holdings Ltd – ADR might see an easygoing year over year comparison in the second half of this year.
According to the playbook of Credit Suisse, the company can witness an year over year growth of 72% and 55%, respectively for last two quarters of the present fiscal year.
Amazon- the best performer on the Internet space
In the 2015 second half, Credit Suisse expects Amazon to outperform expectations. This is so because Amazon is re-accelerating on the growth factor because of its ability to move past the Japanese consumption tax and slashed AWS price.
On the other hand, as far as ARM Holdings is concerned, it shall see a top and bottom line growth benefit because of higher royalties that it shall attract due to new technologies in next 2-3 years. In the near future, ARM Holdings is expected to have newer end markets because of strengthened market position.
As expected, Facebook shall be witnessing a growth in the revenue, mainly because of ads, that too sans material lift. Visa, according to Credit Suisse, is most likely to acquire Visa Europe anytime in close future.
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