Amazon, Facebook Emerge as Top Stock Picks Given Coronavirus Impact: Analyst

Amazon will serve as a consumer staple throughout the pandemic, while Facebook is poised to weather macro turmoil better than most, according to JP Morgan.
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With many more U.S. consumers staying home because of the coronavirus outbreak, Amazon is poised to capture more of the retail market, according to a JP Morgan analyst. 

The bank raised estimates for Amazon  (AMZN) - Get Report to its position in the ongoing U.S. coronavirus epidemic. It now forecasts first quarter revenue at $74 billion, up from about $72.5 billion; for the full year 2020, JP Morgan projects $337.4 billion in sales compared to $333.6 billion previously. 

Amazon is a "primary beneficiary" of the pandemic, which is driving a surge in demand for home delivery of goods, wrote JP Morgan analyst Doug Anmuth. And its gains as people shift to shopping online will likely last through the economic downturn that results from the crisis, just as it did during the 2008 financial crisis, he wrote. 

Amazon is seeking to hire 100,000 additional workers to help the company manage the substantial spike in demand it's seen over the past several days. 

As for Facebook  (FB) - Get Report, its ad revenue will likely come down over the next couple of quarters owing to macroeconomic factors, according to Anmuth. But, similarly to Alphabet's  (GOOGL) - Get Report Google, Facebook's scale will make it "relatively more resilient, w/marketers pulling back on other online publishers first," he wrote.

Facebook is also "simply cheap" at around $145 per share as of March 18, he said. 

The bank also raised estimates for Netflix  (NFLX) - Get Report on the idea that a lack of sports programming will increase demand for subscriptions and encourage more households to cut linear TV. 

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