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AAA  Sep. 7, 2013
Internet high-flyers
By ALEX VEIGA
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Several Internet stocks enjoyed big runs this summer, boosted by strong quarterly earnings reports. Facebook, Groupon, LinkedIn, Yelp and Zillow have all climbed 49 percent or more over the last three months, while the Standard & Poor's 500 index is up 2 percent.

The common theme driving the Internet stocks' gains? Strong earnings and fundamentals, says Fred Dickson, chief investment strategist at D.A. Davidson & Co.

"Each of those came in with better-than-expected second-quarter revenue results, earnings that topped analysts' estimates and generally gave encouraging guidance going forward," Dickson says. Revenue gains were noteworthy because companies in the S&P 500 reported revenue declined 0.7 percent in the second quarter, compared with a year earlier.

Even though each of these stocks has surged in recent months, Dickson believes they have room to rise amid what he anticipates will be a volatile September for the market. Investors will be looking for clarity on questions concerning everything from rising U.S.-Syria tensions, to the federal debt ceiling debate.

"Stocks that have shown strength during the (August) correction most likely should continue to at least match market performance or exceed market performance," he says.

Here are snapshots of this summer's high-flyers.

Associated Press
Copyright 2008 The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.