Citigroup optimistic about the prospects of the US stock internet industry by 2025, the latest "top picks" list has been released.

Citi has listed Meta (META.US), Amazon.com, Inc. (AMZN.US), and DoorDash (DASH.US) as its "top picks" in the internet industry because these companies will all be in a multi-year product cycle by 2025. Citi has raised Meta's target price from $705 to $753, raised Amazon.com, Inc.'s target price from $252 to $275, and set DoorDash's target price at $211. Citi analysts led by Ronald Josey stated in a detailed report, "In many ways, the growth momentum of most internet sub-industries in 2024 is expected to continue into 2025, which is a good sign for our broader ratings. However, in order to achieve sustained outstanding performance, we seek growth driven by products, and we believe Meta's product cycle is one of the deepest product cycles, including MetaAI, Search, Llama, Agents, and opportunities for AI participation and profitability." Citi also emphasized that investments by Amazon.com, Inc. in essentials, delivery speed, and generative AI products of Amazon.com, Inc. Web Services (AWS) should lead to higher profit margins. Meanwhile, with the rise of emerging vertical industries such as grocery delivery and DashPass, DoorDash's demand for food delivery remains elastic. For small and medium-sized stocks in this sector, Citi also listed Reddit (RDDT.US) and Zillow (ZG.US) as top picks. Citi has raised Reddit's target price from $120 to $200. The social media website has seen an increase in daily average users due to the launch of products like Shreddit and Reddit Answers. New advertising automation and updated ad formats have also improved profitability. Citi has also raised Zillow's target price from $77 to $95. Zillow's new products, such as RT Touring, Rentals, and Follow-Up Boss, are helping to increase market share.