Put Alphabet, PayPal Shares Into Your Portfolio Says Recon’s Kelly

Shares of Alphabet (GOOGL) could have another banner year after surging 54 percent in 2015 as traditional media players move more of their ad dollars online to YouTube, said Kevin Kelly, managing partner at Recon Capital. “The year ahead could be the breakout,” said Kelly. 'Now that both TV subscribers and ad dollars are beginning to decline, we expect traditional media companies will become more active in following the trend toward internet distribution and Alphabet is prime for that through YouTube and Android Ads.' Kelly added that the cloud hype from 2009 and 2010 became reality to the broader investment community in 2015. He said China will become a leader in cloud adoption over the next few years as it has been with e-commerce. Baxalta (BXLT) is another one of Kelly’s top picks for 2016. The company’s shares rose over 16 percent since it was spun off from Baxter International (BAX) last July.