U.S. investment bank Goldman Sachs (NYSE:GS) has named online retail giant Amazon (NASDAQ:AMZN) as its top technology stock pick for 2022.
Goldman Sachs says that Amazon’s underperformance is set to come to an end as we enter the New Year.
After trailing the rest of its technology peers this year, Amazon is poised to outperform in 2022 as it benefits from resurgent growth in a range of markets such as e-commerce, cloud computing and advertising, Goldman analyst Eric Sheridan wrote in a note to clients, making the stock their top pick among U.S. Internet names.
Goldman’s endorsement is the latest show of support for Amazon which has failed to keep pace with the S&P 500 Index throughout this year.
Amazon’s shares have gained nearly 10% in 2021 as it grappled with a re-opening economy, rising labour costs and supply chain disruptions. The benchmark S&P 500 index, by comparison, is up 25% on the year.
"We see Amazon as a top pick on a 12-month view with an increasingly positive skew in its risk/reward after a pronounced period (16+ months) of share underperformance," Sheridan wrote.
Goldman Sachs’ current $4,100 price target on Amazon stock implies a gain of about 16% from current levels.
