JPMorgan highlighted Amazon as its best idea going into the second-quarter earnings season for technology stocks, followed by Uber and Google . Netflix ‘s earnings report, due out postmarket Thursday, marks the beginning of earnings for the internet sector. JPMorgan analyst Doug Anmuth wrote that the Wall Street bank remains bullish on larger players in the industry, for now. “We continue to prefer large-cap names, though we recognize pockets of concern around elevated expectations, higher valuations, & potential slowdown in 2H consumer spending,” he wrote. The analyst highlighted Amazon as his favorite stock for the near- and long-term. Although the e-commerce stock is “well-owned,” he pointed to Amazon’s rapid secular growth as a catalyst. For instance, Amazon Web Services could accelerate due to new workload migrations and increased generative artificial intelligence monetization. “We believe Amazon’s flexibility in pushing first-party vs. third-party inventory and the Prime membership serve as major advantages in its Stores business, and its multi-year head start in the cloud has led to ~35% AWS global market share,” the analyst wrote. “High-growing AWS and Advertising revenue streams are AMZN’s most profitable businesses, further supporting margin expansion & FCF generation.” Anmuth added that Amazon seems on track for multi-year margin and free cash flow expansion. Amazon stock has gained 27% this year. The analyst’s price target of $240 implies that shares could rally another 25% from here. Anmuth also highlighted Uber as a top pick stock, citing its market leadership in the ride-sharing and food delivery industries, alongside its ability to leverage its scale to rapidly launch new products. The analyst believes Uber also has the ability to weather some near-term macroeconomic volatility due to increased Uber One and food delivery adoption, higher customer retention, strong balance sheet, ability to expand in other markets and strong potential free cash flow generation. “We are confident in Uber’s ability to drive strong multi-year growth across the business, while delivering increasing levels of EBITDA & FCF, & returning capital to shareholders,” Anmuth wrote. “For Delivery, we think consumers have remained resilient, and we expect Delivery GB growth to remain stable Q/Q aided by partnership with Costco, as well as Instacart which could help offset any weakness in core food delivery.” Uber stock is up nearly 4% in 2024. Anmuth’s $95 price target is approximately 31% above where shares closed Monday. Alphabet was JPMorgan’s third pick in the internet sector. Both the company’s Class A and Class C shares are up 32% year to date. JPMorgan’s $200 price target implies that the shares could respectively climb 7% and 6%. As catalysts, Anmuth cited the Google and YouTube owner’s solid fundamentals and status as a beneficiary of generative AI and an increasingly digital economy. “Google remains focused on innovation, and we continue to believe there is healthy runway across Search and YouTube ads as AI drives higher ROI & TV dollars shift online,” the analyst wrote. “We remain confident in the company’s ability to innovate around Generative AI, control costs, & generate solid top-line growth.” — CNBC’s Michael Bloom contributed to this report.