Goldman Sachs named Amazon (AMZN) – Get Amazon.com, Inc. Report as its top stock pick for 2022 in the Internet space, with Uber (UBER) – Get Uber Technologies, Inc. Report, Lyft (LYFT) – Get Lyft Inc Class A Report, Snap (SNAP) – Get Snap, Inc. Class A Report and Meta Platform (Facebook) (FB) – Get Facebook, Inc. Class A Report also on the list of top picks.
Goldman analysts led by Eric Sheridan said, “We see:
· “AMZN [as] our top pick for 2022, as we view this recent earnings report as fully reflective of investor concerns on both revenue and profitability into 2022. AMZN is exposed to a multitude of broader secular growth themes, including e-commerce, advertising, cloud computing, media consumption and consumer subscription adoption;
· “the most compelling buying opportunities in our ridesharing coverage (Uber/Lyft), as elements of recovery and increased profitability take hold into 2022;
· 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.”
One company that’s not a top pick for Goldman: Peloton (PTON) – Get Peloton Interactive, Inc. Class A Report. It’s a “name that has generated an increased level of investor attention post its earnings selloff,” the analysts said.
But “we remain neutral-rated on PTON as we try to ascertain visibility into end demand trends,
investments and long-term cost structure for the company post-Covid.”
Morningstar analyst Dan Romanoff likes Amazon, too, assigning the retail/technology colossus a fair value of $4,100 and a wide moat.
Amazon recently traded at $3,571, up 0.86%.
“We see shares as attractive,” he wrote after the company’s third-quarter earnings report last month. “We continue to view advertising and Amazon Web Services as key long-term growth drivers for the firm.”