Buy 3 Internet-Centric Stocks for Stellar Returns Amid Rate Cut Hope

Core Viewpoint - The Federal Reserve Chairman Jerome Powell indicated that an interest rate cut is imminent, with a 100% probability of a 25-basis point cut in September and a 65.3% chance of a full 1% cut in 2024, which is expected to benefit growth stocks, particularly in the technology sector [1][2]. Group 1: Impact of Interest Rate Cut on Growth Stocks - A lower market interest rate is anticipated to boost growth stocks, particularly in technology, by decreasing the discount rate and increasing the net present value of investments [2]. - The Internet Software and Services sector is experiencing growth due to increased IT spending and the rise of connected consumer devices, which facilitate online business [2]. Group 2: Industry Trends - The Internet-Commerce industry is thriving in 2024, especially among Gen-Z consumers who are accustomed to online shopping and high levels of digitization [3]. Group 3: Top Stock Picks - Three Internet-centric stocks identified for investment are Datadog Inc. (DDOG), Uber Technologies Inc. (UBER), and ACV Auctions Inc. (ACVA), all showing strong upside potential for the remainder of 2024 [4]. Group 4: Datadog Inc. (DDOG) - Datadog is experiencing growth due to new customer acquisitions and increased adoption of its cloud-based monitoring platform, with expected net sales growth of 22% in 2024 [5]. - The company has a projected revenue growth rate of 23.3% and earnings growth rate of 22.7% for the current year, with positive earnings estimate revisions noted [6]. Group 5: Uber Technologies Inc. (UBER) - Uber's Delivery business is benefiting from rising online order volumes, with gross bookings expected to be between $40.25 billion and$41.75 billion for Q3 2024 [9]. - The company has an expected revenue growth rate of 16.5% and earnings growth rate of 19.5% for the current year, with positive earnings estimate revisions [11]. Group 6: ACV Auctions Inc. (ACVA) - ACV Auctions operates a digital marketplace for wholesale vehicle auctions, providing various services that enhance buyer and seller interactions [14]. - The company has an expected revenue growth rate of 29.4% and earnings growth rate exceeding 100% for the current year, with positive earnings estimate revisions [15].