What's next for Internet stocks?

There's no valuation bubble, says T. Rowe Price's Paul Greene, though he expects an economic slowdown to mute gains.

Diana Cawfield 9 April, 2015 | 5:00PM

The digital revolution is far from over and there's good value to be had in Internet-related stocks, according to media-industries specialist Paul Greene, manager of TD Entertainment & Communications.

"It's probably not a surprise to many that the Internet is a very strong, growing area, with a lot of secular tailwind at its back," says Greene, a vice-president, analyst and portfolio manager at T. Rowe Price Associates Inc. in Baltimore. "Mobile phones have also accelerated this trend," he says, as has cloud computing. Another expanding area is social networking, "which is a fairly recent phenomenon, and will influence the business markets."

Greene predicts that Internet-related businesses will gain additional market share over the next 20 years, and that many more large companies will emerge. He cites U.S. research showing that people have been spending more and more time online.

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Securities Mentioned in Article

Security NamePriceChange (%)Morningstar Rating
Alphabet Inc A1,528.38 USD0.59
Booking Holdings Inc1,970.42 USD-0.30

About Author

Diana Cawfield

Diana Cawfield  Diana Cawfield is an award-winning writer who has been a regular Morningstar contributor since 2000. Her numerous publication credits include the Toronto StarAdvisor's Edge and Chatelaine, as well as the Canadian Securities Institute's online educational services.