Last year was a strong one for equity markets overall, and an even better year for Internet stocks. U.S. Internet stocks in the J.P. Morgan coverage universe appreciated by a market cap-weighted average of 78% vs. the S&P 500 up 30%, while global Internet names covered by the firm increased 84% during the year. Broad-based strength was evident across online subscription, advertising and commerce models, given the backdrop of powerful secular trends and an improving macro environment.

The question is always how does that kind of growth continue? The amazing thing about the Internet story is that in reality it is still in its infancy. What is now somewhat ubiquitous was a novel idea just getting off the ground less than 20 years ago. The innovation and change sparked by the commercialization of the Internet began in earnest less than 10 years ago. While trend growth can always slow, a massive game-changing infrastructure change like the Internet has years of development and change ahead. Think of the growth of the telephone from the earliest stages to today. Part of the change for telephone service is directly as a result of the Internet via Voice over Internet Protocol (VoIP).

Here are the Internet stocks that the J.P. Morgan team sees as stocks to buy for now and the future.

Facebook Inc. (NASDAQ: FB) blew out earnings for the third quarter in a row and was up more than 15% after the gigantic earnings home run. The company has totally revamped its mobile advertising arm, and the efforts are paying off big time. Every metric from the most users to margin expansion to soaring ad revenues has Wall Street buzzing about the stock. The J. P. Morgan price target for the social media giant jumps to $80 from $62. The Thomson/First Call estimate is at $69.84. Facebook closed Monday at $61.48.

Google Inc. (NASDAQ: GOOG) posted incredible fourth-quarter numbers and continues to grow vertically in almost every conceivable area. The sale of the Motorola Mobility unit to Lenovo was seen as a good step for the company, despite the perceived low sales price. Wall Street analysts think that Google’s exit from the handset business should strengthen Android by reducing the risk that handset makers will deploy competitive operating systems. With Android in the lead position for the foreseeable future, they think iOS can continue to focus on the mid- to high-end. Importantly, Google maintains ownership of most of Motorola’s deep patent portfolio. The J.P. Morgan price target is raise to $1,325, and the consensus target is $1,299.49. Google closed Monday at $1,133.43.

LinkedIn Corp. (NYSE: LNKD) continues to be the go-to site for people looking to increase their professional exposure. Despite a sky-high price and soaring multiples, the company dominates the professional and career space. As business becomes more and more comfortable using its platform, advertising sales should continue to grow. LinkedIn remains the one major social media network that is not blocked in China. The J.P. Morgan price target for the stock is $275, and the consensus price target is $263.32. LinkedIn closed Monday actually up at $215.40.

Pandora Media Inc. (NYSE: P) has dominated Internet radio and it is now making a tremendous push to be a standard item in new cars. At this year’s Consumer Electronics Show in Las Vegas, Pandora unveiled its monetization strategy for in-car systems. The company plans to introduce 15-second and 30-second audio advertisements while reducing ad frequency, as compared to its other platforms such as desktop, smartphone and tablet. The J.P. Morgan price target is $44, and the consensus figure is at $31.72. Pandora closed Monday at $34.98.

Qihoo 360 Technology Co. Ltd. (NYSE: QIHU) provides Internet and mobile security products in the People’s Republic of China. Its core Internet security products include 360 Safe Guard, a solution for Internet security and system optimization; 360 Anti-Virus, an anti-virus application that uses multiple scan engines to protect users’ computers against various kinds of malware; as well as 360 Mobile Safe, a security program for the Google Android, Apple iOS and Nokia Symbian smartphone operating systems. The J.P. Morgan price target is $98, and the consensus is at $93.80. Those numbers may go higher as the stock closed Monday at $94.51.

YY Inc. (NASDAQ: YY) operates an online social platform in China. It provides YY Client, personal computer-based user software that offers real-time access to user-created online social activities groups. The company also offers Web-based YY, which enables users to conduct real-time interactions on the Web without any downloads or installations, and Mobile YY, a smartphone application. The J.P. Morgan price target for this Chinese Facebook is $67. The consensus target is $65.33, and YY closed Monday at $62.46.

Yandex N.V. (NASDAQ: YNDX) is the largest search engine in Russia. The company generates the bulk of its revenues from text-based advertising but also develops other services such as its comparison shopping system Yandex.Market. Recently, in an effort to expand its current business model, the company invested in MultiShip, a logistics services provider for online stores, in a move to reinforce its e-commerce platform. The J.P. Morgan price target is $50, and the consensus price target was not posted. Yandex closed Monday at $35.01.

All across the world, the Internet has become a necessary instrument for everything from entertainment to commerce to corporate success. Every major country is expanding not only their internet capacity, but the offerings that are available to consumers. Despite the current market sell-off, the sheer infancy of the Internet bodes well for continued growth and profits for years to come.

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