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Amazon Is Goldman's Top 2022 Internet Stock Pick

Goldman Sachs named Amazon its top 2022 internet stock pick and named Uber, Lyft, Snap and Meta (formerly Facebook) to its list of top sector picks.
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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 Meta Platforms 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.

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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. 

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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.”