- Internet investors remain primarily focused on shorter-term trends, near-term growth comps, and macro influences, rather than secular growth drivers, heading into 2022, Baird analyst Colin Sebastian tells.
- Sebastian assumes that forward-year growth comps and margin trends will mainly drive near-term sentiment and less by the size of total addressable markets or secular growth themes.
- With this in mind, Sebastian transitioned his large-cap pick from Alphabet Inc GOOG GOOGL to Amazon.com Inc AMZN and Meta Platforms Inc FB.
- Sebastian also changed his top small/mid-cap picks from ChannelAdvisor Corp ECOM, Carvana Co CVNA, and Take-Two Interactive Software Inc TTWO to Zynga Inc ZNGA.
- Additionally, Sebastian warmed to a few others, including Twitter Inc TWTR and Vroom Inc VRM.
- For Meta, Sebastian expects more positive commentary on core advertising trends in 2022.
- On Amazon, he says the company is a crucial beneficiary of digital transformation and a mix shift towards recurring revenues.
- For Zynga, Sebastian sees potential positive catalysts from easing Identifier for Advertisers headwinds and ramping monetization of new titles.
- Price Action: AMZN shares traded higher by 0.20% at $3,420 in the premarket session on the last check Wednesday.
© 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
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