Goldman Sachs named Amazon.com Inc (NASDAQ: AMZN) as its top stock pick for 2022 in the Internet space, The Street reports.
Goldman analysts led by Eric Sheridan see Amazon as their top pick for 2022, assigning a Buy rating and a $4,100 price target, implying a 15.8% upside on November 16 closing price of $3,540.70. They view this recent earnings report as fully reflective of investor concerns on revenue and profitability into 2022.
- Amazon has broader secular growth themes, including e-commerce, advertising, cloud computing, media consumption, and consumer subscription adoption.
- Goldman suggests investors should bet on Amazon despite rising wages and other hurdles rendering the e-commerce business more expensive, CNBC reports. It says that Amazon has already priced in the surging labor costs.
- Uber Technologies Inc (NYSE: UBER), Lyft Inc (NASDAQ: LYFT), Snap Inc (NYSE: SNAP), and Meta Platforms Inc (NASDAQ: FB) also feature on the list of its top picks.
- Goldman says, “the most compelling buying opportunities in our ridesharing coverage (Uber/Lyft), as elements of recovery and increased profitability, take hold into 2022.
- Goldman adds Snap and Meta-Facebook “as mean reversion plays, as disappointing third-quarter 2021 revenues and forward commentary now sets. Both companies [will go] up as ‘normalization’ plays into 2022.”
- In a look back at the Q3 earnings season for the Americas Internet group earlier, Sheridan highlighted what he sees as “a few key themes,” including digital advertising excluding Alphabet Inc (NASDAQ: GOOG) (NASDAQ: GOOGL) proving to show the highest single stock volatility; streaming media players Netflix Inc (NASDAQ: NFLX) and Spotify Technology SA (NYSE: SPOT) emerging from a period of sustained stock underperformance to surprise to the upside; e-commerce trends remaining volatile; and online travel and ridesharing re-opening companies having “broadly painted a picture of improved recovery.”
- Price Action: AMZN shares traded higher by 3.86% at $3,685 on the last check Thursday.
Latest Ratings for AMZN
|Oct 2021||RBC Capital||Maintains||Outperform|
|Oct 2021||Credit Suisse||Maintains||Outperform|
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