Piper Sandler’s Top Internet Stock Picks for Current Market Headwinds – 24/7 Wall St.

Headwinds within the market are particularly strong right now. Geopolitical tensions, Chinese lockdowns, and upcoming interest rate hikes are just a few examples of what investors are facing at the moment. While a lot of uncertainty surrounds these headwinds, investors can look to analysts for stocks to buy and stocks to avoid, as it is increasingly becoming a stock-picker’s market.

Piper Sandler issued a few calls on Monday morning with a focus on internet stocks. Although not all the calls are positive, the firm highlighted some of the biggest names within this segment, centered around web development.

Again, while headwinds have put a damper on the markets in general, Piper Sandler believes that a couple of these internet stocks could provide solid upside for the time being.

24/7 Wall St. is taking a closer look at a few recent analyst reports for internet stocks. Although these particular companies do not make up a significant portion of the sector (like the big names of Alphabet, Apple or Amazon, which are reporting earnings later this week), investors still could still see significant moves in playing these stocks.

GoDaddy

GoDaddy Inc. (NYSE: GDDY) is known for its rambunctious Super Bowl commercials and its cloud-based products. Basically, this company helps consumers register domains and host websites, while providing security and applications for these sites. Out of this group, GoDaddy is Piper Sandler’s top pick. The analyst upgraded the stock to an Overweight rating from Neutral and raised the $94 price target to $110, implying upside of 31% from the most recent closing price of $83.67.

The stock was trading up around $85 Monday morning, and it has a 52-week range of $65.70 to $90.43. The stock is down around 1.4% year to date.

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Wix.com

Piper Sandler downgraded Wix.com Ltd. (NASDAQ: WIX) to Underweight from Neutral. The analyst also cut the $105 price target to $78, which implies downside of 6% from the most recent closing price of $82.98. This company allows consumers to create websites or web applications. Some applications within Wix’s suite use artificial intelligence. At the end of 2021, the company had roughly 222 million registered users and 6 million premium subscriptions.

Wix stock has a 52-week trading range of $70.70 to $329.00, and it traded near $82 on Monday. Shares are down 47% year to date.

Squarespace

Squarespace Inc. (NYSE: SQSP) operates platform for businesses and independent creators to build an online presence, grow their brands and manage their businesses across the internet. Its suite of integrated products enables users to manage their projects and businesses through websites, domains, e-commerce, marketing tools and more. Piper Sandler downgraded it to Neutral from Overweight and cut the price target to $26 from $45. This implies upside of nearly 25% from the most recent closing price of $20.87.

The stock was trading at around $21 on Monday, and it has a 52-week trading range of $18.57 to $64.71. Squarespace stock is down over 29% year to date.

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