Baird Picks Amazon, Meta, Zynga As Top Internet Picks For 2022

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.