Amid the market swings triggered by tariff headlines and growing fears of a trade war, JPMorgan thinks there are still some bright spots, especially among Europe’s internet companies. For UK investors, two names stand out: Ocado and Rightmove.
JPMorgan remains positive on Ocado Group PLC (LSE:OCDO), seeing it as one of the few firms in the space with earnings resilience and structural growth potential.
While the online grocer has divided opinion over the years, analysts believe its tech and logistics model still has legs — particularly as the world shifts further towards e-commerce.
They’re much more cautious on Rightmove PLC (LSE:RMV), however.
The UK property portal has enjoyed a bounce in its share price recently, but JPMorgan warns that margin pressure, essentially rising costs eating into profits, means that rally may be overdone.
It's kept the stock in their “underweight” bucket, suggesting investors tread carefully.
Zooming out, the broader European internet sector has dropped about 6% since April began, better than the wider MSCI Europe index, which is down 12%.
JPMorgan has trimmed its profit forecasts by around 3% but still sees the sector as relatively well insulated from trade friction. That’s because many of these firms run local businesses and rely more on long-term trends and cost-cutting than day-to-day economic swings.
Beyond the UK names, the bank’s top picks include Auto1, a German used car platform they say has solid demand dynamics, and Scout24, a property listing site they believe has strong pricing power. Both are expected to hold up well even as the macro picture worsens.
One stock they’ve cooled on is HelloFresh. The recipe box business makes around 60% of its money in the US, where consumers are starting to feel the pinch. JPMorgan has downgraded it to “neutral”, saying that while the shares are cheap, they’re unlikely to outperform in the near term.
With policy uncertainty swirling and markets still on edge, the message is clear: stick with digital businesses that are less exposed to global trade flows and more reliant on local strength.