Amazon, Facebook's Meta named top Internet picks by Baird for 2022

Saying that as investors remain focused on factors such as shorter-term trends, Baird analyst Colin Sebastian is calling Amazon (NASDAQ:AMZN) and Facebook parent Meta Platforms (NASDAQ:FB) as his top picks for large-cap Internet companies in 2022.
Sebastian said Amazon (AMZN) and Meta (FB) are replacing Alphabet (NASDAQ:GOOG) as his "large-cap pick[s]" due to a handful of factors in those companies' favors. For Amazon (AMZN), Sebastian said the e-commerce and web services giant is "a key beneficiary of digital transformation and a mix shift towards recurring revenues." Sebastian said he believes that "concerns over slower online retail growth and lower margins have largely run their course.
Sebastian has an outperform rating on Amazon's (AMZN) stock.
With regards to Meta (FB), Sebastian said he is expecting the company to benefit from more positive news about core advertising trends, as well as easier year-over-year business comparables in 2022. Sebastian added that Meta's (FB) gains in social commerce, augmented and virtual reality and infrastructure related to the Metaverse should add to the company's business gains in the years ahead. Like with Amazon (AMZN), Sebastian has an outperform rating on Meta's (FB) shares.
Sebastian's upbeat opinions of Amazon (AMZN) and Meta (FB) came one day after Evercore ISI analyst Mark Mahaney also placed the two companies among his top picks for 2022.