The tech sector is on a tear in 2022, but that has created opportunities for investors to scoop up discounted stocks heading into next year. “While we recognize the many challenges facing the broader Internet sector, we continue to believe the long-term global benefits outweigh the short-term,” Citi analyst Yigal Aronian wrote in a Dec. 12 note. For many companies in our coverage.” At the same time, the main drivers of the Internet sector have not changed, and there is an opportunity in the group over time, Aronian said. Amazon reiterated that CT is the top choice in the space, and the Meta platform is the second. Goldman Sachs sees the potential in the technology pocket. In a Dec. 13 note, Eric Sheridan wrote, “We see the most compelling risk/reward in the group among a group of large-cap companies with many similar narratives. Those narratives include a well-established and balanced end-market position, the ability to manage an improved earnings trajectory through 2023 and beyond.” , as well as the “wall of stress” that has become more prominent over the past six months. Goldman’s top picks include Amazon and Meta. Top Picks – Amazon has high ratings even as Wall Street is down about 45%. Citi sees demand on Amazon, especially in retail. While he acknowledges challenges, the company can continue to find its wallet even amid economic uncertainty. He believes. Additionally, “AWS adoption can be accelerated through improved operational efficiencies, and employment reductions can improve operating income,” Aronion wrote. Citi has a Buy rating and a $145 price target. Shares ended Tuesday’s session at $92.49, up about 2% for the day. Goldman Sachs rates the possibility of buying Amazon among its top picks at buy. According to Sheridan, the stock has seen a multi-year underperformance due to the impact of the Covid pandemic on margins and macroeconomic headwinds. In addition, the company is taking advantage of the “increasing utility behavior, cross-platform narratives in advertising and media consumption of the general user base.” Amazon in 2010 It has marginal self-healing potential through 2023 and beyond, plus well-proven multi-year global growth for AWS, Sheridan added. Top Pick – Meta Meta Platform is Citi’s second technology pick – the company has a Buy rating and a $168 price target. The social media giant has suffered this year, with a 65% slide by 2022. It ended Tuesday, up 4.7%, to close at $120.15. (we believe MSI) is offering, making it more relevant. “This ad platform has been rebuilt for the post-IDFA environment and demand for new ad products like Reels, Click-To-Message and Advantage+ will attract increasing ad dollars,” said Goldman on Meta. It’s brutal. “Fears for the negative outlook and investment cycle for the core business are weighing on stocks, with large engagement and consumer utility items remaining largely unearned,” Sheridan said. These include messaging and short-form video, the core product with 12 to 18 months of headwinds from Apple. He said privacy changes and advertisers are slowing down in long-tail e-commerce and other growth categories. Goldman also has a buy rating on Meta. —CNBC’s Michael Bloom contributed to this story.
