The equity research team of influential Wall Street player J.P. Morgan expects a strong performance for the online industry in 2012, with strong growth prospects due to the continued popularity of smartphones and tablets and a strong trend towards social and local.

Such a forecast would point towards naming Facebook and Google as the strongest prospects, but J.P. Morgan thinks that it is not the ad-supported Internet companies that will beliver the strongest performances, but e-commerce players such as Amazon and Priceline.

This doesn’t mean they don’t like Google but they think the risk/reward ratio may be better at the online traders.   But the ad-driven sector will nevertheless do well especially in the display segment with growth of 16% expected over the year.  

Source: OnlineMediaDaily