Shopify Inc. (NASDAQ:SHOP) and Take-Two Interactive Software Inc. (NASDAQ:TTWO) remain JPMorgan’s highest-conviction consumer technology investments, but the New York-based bank says investors shouldn’t overlook a handful of smaller companies benefiting from long-term trends including artificial intelligence, digital transformation and expanding online marketplaces.
After assuming coverage on seven SMID-cap consumer internet companies, JPMorgan moved to Overweight ratings on Clear Secure, Inc. (NYSE:YOU), Xometry, Inc. (NASDAQ:XMTR) and EverQuote, Inc. (NASDAQ:EVER), while initiating Neutral ratings on Match Group, Inc. (NASDAQ:MTCH), Roku, Inc. (NASDAQ:ROKU), Frontdoor, Inc. (NASDAQ:FTDR) and MediaAlpha, Inc. (NYSE:MAX).
The firm also reiterated that Shopify and Take-Two remain on its U.S. Equity Analyst Focus List as its top consumer internet ideas.
JPMorgan’s Five Favorite Consumer Tech Stocks
While the companies operate across very different industries, JPMorgan’s preferred names share a common thread: they are gaining market share in large addressable markets while using AI and product innovation to drive growth and improve profitability.
- Shopify: JPMorgan continues to rank Shopify among its highest-conviction consumer internet investments, keeping the e-commerce platform on its U.S. Equity Analyst Focus List. The firm continues to view Shopify as one of its preferred ways to gain exposure to the ongoing digitization of commerce.
- Take-Two Interactive: The bank also maintained Take-Two on its Focus List, underscoring its confidence in the video game publisher as one of its favorite long-term consumer technology investments.
- Clear Secure: JPMorgan upgraded Clear to Overweight, citing multiple growth drivers including expanding airport penetration, corporate memberships, international expansion and new premium offerings. The bank assigned the stock a December 2027 price target of $55, implying roughly 27% upside from its recent price of $43.29. The firm also estimates Clear’s renewed partnership with American Express Co (NYSE:AXP) could add roughly $140 million in incremental annualized bookings, while continued pricing gains and higher adoption of services like Concierge and TSA PreCheck enrollment should support revenue growth and margin expansion.
- Xometry: JPMorgan also turned bullish on Xometry, saying the online manufacturing marketplace is well positioned to benefit from the continued shift toward digital procurement in the custom manufacturing industry. Its December 2027 price target of $120 implies about 44% upside from the stock’s recent price of $83.59. The bank pointed to AI-driven product improvements, growing enterprise adoption, international expansion and Xometry’s partnership with Siemens as catalysts that could support revenue growth above 30% through the second half of the year before remaining above 20% in 2027.
- EverQuote: EverQuote rounded out JPMorgan’s preferred SMID-cap picks, with the firm highlighting improving insurance-industry fundamentals, growing digital advertising budgets, and expanding AI capabilities. JPMorgan’s December 2027 price target of $29 represents roughly 15% upside from the stock’s recent price of $25.24. JPMorgan said EverQuote continues to gain market share as insurers increase online spending, while the company’s AI-powered marketing tools and partnerships should support higher conversion rates and long-term revenue growth.
The Common Theme
Although the five companies operate in different corners of the consumer technology market, JPMorgan sees similar characteristics driving its bullish stance.
The bank favors businesses benefiting from secular digital transformation, AI-enhanced products, expanding addressable markets and improving operating leverage. Those factors underpin its continued confidence in Shopify and Take-Two, while supporting new Overweight ratings on Clear, Xometry and EverQuote.
For investors looking beyond mega-cap technology stocks, JPMorgan’s latest consumer internet research suggests opportunities remain across a diverse group of companies leveraging technology to modernize industries ranging from e-commerce and manufacturing to travel and insurance.
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