BMO Capital Markets analyst Daniel Salmon upgraded Alphabet Inc. shares (NAS:GOOGL) (NAS:GOOG) to outperform from market perform on Monday, writing that he expects mega-cap internet companies to be popular when the economy rebounds. Salmon prefers Alphabet's stock to Facebook Inc.'s (NAS:FB) as the Google parent company has greater exposure to large businesses, whereas smaller enterprises will likely feel the effects of the COVID-19 outbreak more strongly. He also argued that Alphabet's YouTube subscription offerings should see benefit from lockdowns. Salmon still prefers Amazon.com Inc.'s stock (NAS:AMZN) over Alphabet's, writing that he expects the e-commerce giant's advertising business to be more resilient during the pandemic. Alphabet shares up up 0.6% in premarket trading Monday. The stock has dropped 17% over the past month as the S&P 500 (S&P:SPX) has declined 14%.
March 30, 2020, 7:53 a.m. EDT