Updated from July 12 to include expected stock price reaction for Amazon and LinkedIn.
NEW YORK (TheStreet) -- Even with the global economy slowing due to weakening numbers out of China and continued austerity measures in Europe, Citigroup likes Amazon (AMZN), Priceline (PCLN) and LinkedIn (LNKD) as its top three large cap Internet names for the second-quarter earnings season.
Analyst Mark Mahaney believes that valuations for the Internet names are now "neutral," as he slashed second-quarter and full-year earnings estimates for Amazon, Priceline, LinkedIn, as well as Groupon (GRPN) and eBay (EBAY), explaining that "[m]acro & FX create greater than normal risk this EPS season." Mahaney took down earnings estimates between 1% and 3% for the companies.
Despite these concerns, the analyst says that recent weakness in the price action of certain names is providing attractive entry points, as earnings season kicks off.Here are Citigroup's top three Internet large cap names for the second quarter earnings season of 2012.
Select the service that is right for you!COMPARE ALL SERVICES
- $2.5+ million portfolio
- Large-cap and dividend focus
- Intraday trade alerts from Cramer
- Weekly roundups
Access the tool that DOMINATES the Russell 2000 and the S&P 500.
- Buy, hold, or sell recommendations for over 4,300 stocks
- Unlimited research reports on your favorite stocks
- A custom stock screener
- Upgrade/downgrade alerts
- Diversified model portfolio of dividend stocks
- Alerts when market news affect the portfolio
- Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
- Real Money + Doug Kass + 15 more Wall Street Pros
- Intraday commentary & news
- Ultra-actionable trading ideas
- 100+ monthly options trading ideas
- Actionable options commentary & news
- Real-time trading community
- Options TV