Here are two major technology actions to avoid, according to Goldman Sachs

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There is still some opportunity among large-cap internet stocks, but investors should avoid two names, according to Goldman Sachs.

Eric Sheridan of Goldman began hedging 17 largest-capitalized Internet shares on Sunday afternoon and assigned sales ratings to Airbnb Inc. ABNB,
-2.62%
and Twitter Inc. TWTR,
-2.69%
actions. Shares of Airbnb were down 2.8% on Monday trading, while those of Twitter were down 3.4%.

While Sheridan expects Airbnb to continue to outperform the broader online travel industry over the next five years, it sees a negative balance between reward and risk.

Sheridan wrote that investors seem to be very convinced that Airbnb will benefit from a “new normality” of travel given the emergence of more flexible work / life structures, which means they could travel more freely and spend more time. to their destinations. But “he is not yet convinced that this result has a high probability” and argues that significant investor optimism about this dynamic already has a price on Airbnb shares.

He set a target price of $ 132, which changed hands above $ 160 starting Monday at noon.

Sheridan is also concerned about risk-reward / reward risk on Twitter, and writes that he believes the recovery in advertising has a price on stocks.

Another key issue for Twitter is whether the company can successfully use new features such as audio rooms, newsletters and tipping jars to increase participation and monetization. Twitter has been picking up the pace of feature introductions recently after gaining a reputation for being slow on innovation, but “the likelihood of success of these platform evolutions remains an open question,” Sheridan wrote. .

He set a target price of $ 60 for the stock, which recently changed hands to $ 59.44.

Sheridan was more optimistic about other elements of the Internet universe, assigning buy ratings to shares of Amazon.com Inc. AMZN,
-0.33%,
Facebook Inc. FB,
-0.83%,
Alphabet Inc. GOOG,
+ 1.08%

GOOGL,
+ 0.89%,
Snap Inc. SNAP,
-3.94%,
Uber Technologies Inc. UBER,
+ 2.08%,
Lift Inc. LIFT,
+ 3.94%,
and Expedia Group Inc. EXPE,
+ 1.78%

It is neutral in the PINS shares of Pinterest Inc.,
+ 1.28%,
Chewy Inc. ALL,
-2.38%,
Netflix Inc. NFLX,
-1.87%,
Peloton Interactive Inc. PTON,
-0.54%,
Spotify Technology SA SPOT,
-0.80%,
Booking Holdings Inc. BKNG,
+ 0.05%,
and DoorDash Inc. DASH,
+ 0.38%

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