Amazon $AMZN Pullback To Support, Top 2022 Pick

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AMZN stock is testing support as Baird thumbs up the stock as a top pick for 2022.

Baird names AMZN stock a top internet stock pick for 2022

Internet investors remain largely 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 investors in a research note. The analyst assumes that near-term sentiment will be driven more by forward-year growth comps and margin trends, and less by the size of total addressable markets or secular growth themes. His large-cap pick is Amazon.com (AMZN). He says the company is a key beneficiary of digital transformation and a mix shift towards recurring revenues.

Amazon looks particularly attractive after wild year for tech, Barron’s says

In this week’s edition of Barron’s, Eric Savitz writes that tech was whipsawed by COVID-related newsflow, anticipation of higher rates, the stuttering progress of the reopening, and newfound skepticism about excessive valuations. While 2020 highfliers like Zoom Video (ZM), DocuSign (DOCU), and Okta (OKTA) fell into the red, investors scored big gains with legacy tech names like Oracle (ORCL), HP Inc. (HPQ), and Dell Technologies (DELL). Amazon (AMZN) was the laggard, with just 5% gain, but after a lackluster year, the stock is the most appealing of the tech giants for 2022, Savitz adds. Source: https://www.barrons.com/articles/amazon-stock-buy-for-2022-51640900207?mod=past_editions

U.S. media groups to spend over $100B on new content in 2022, FT reports

On December 29, 2021, FT reported that the top eight U.S. media groups expect to spend a minimum of $115B on new content next year to pursue video streaming businesses that lose money for the majority of them. Most of the companies, including Walt Disney (DIS), Comcast (CMCSA), WarnerMedia (T) and Amazon (AMZN) are on track to rack up losses for their streaming divisions while companies like Netflix (NFLX), ViacomCBS (VIAC), Fox (FOX) and Apple (AAPL) also plan to spend billions of dollars on content. Source: https://www.ft.com/content/ae756fda-4c27-4732-89af-cb6903f2ab40

Evercore ISI’s Mark Mahaney announces top internet picks for 2022

On December 28, 2021, with interest rates rising and global economies “hopefully opening” in 2022, Evercore ISI analyst Mark Mahaney is taking a “more muted/cautious stance” on the internet space, which he calls a “relatively high-growth, high-multiple” sector going into 2022. Within the mega caps, Mahaney’s top picks, in order, are Amazon.com (AMZN), Uber Technologies (UBER) and Meta (FB). The analyst says Amazon is “arguably the single best fundamental asset in Net-land.” He believes the company’s “massive” 2020 and 2021 infrastructure investments should begin to pay dividends in 2022.

Amazon exiting crisis as ‘one of the biggest beneficiaries,’ says Monness Crespi

On December 27, 2021, Monness Crespi analyst Brian White notes that Amazon shares have trailed this year’s “healthy market rally” after a strong stock performance in 2020, but after having attended AWS re:Invent earlier this month White contends that Amazon is “uniquely positioned to exit this crisis as one of the biggest beneficiaries of accelerated digital transformation.” The analyst, who noted that AWS CEO Adam Selipsky pointed out during his keynote that AWS now has 84 availability zones across 26 geographic regions and offers over 200 fully-featured services while serving millions of customers, believes “the company’s fortunes are poised to change in 2022.” White has a Buy rating and a $4,500 price target on Amazon shares.

Amazon Staten Island workers refile union petition, CNBC says

On December 22, 2021, a labor group aiming to organize Amazon warehouse staff in Staten Island, New York has field a union petition with the National Labor Relations Board, CNBC’s Annie Palmer reports. The group fired filed a request for a union vote in October, though workers withdrew the petition last month after the NLRB found that the group hadn’t gathered enough signatures to force an election, Palmer says. NLRB spokesperson Kayla Blado told CNBC that the Amazon Labor Union is in the process of gathering all the necessary paperwork to file for a union election. Source: https://www.cnbc.com/2021/12/22/amazon-warehouse-workers-on-staten-island-refile-union-petition.html

Bullish Option Flow In Amazon Stock

Bullish option flow was detected in AMZN stock on December 31, 2021. The bullish flow was valued at $7.65 million.

Amzn Option Flow

Make sure to review this lesson on option flow so that you understand the image above.

📺 Amazon is our top tech pick for 2022: Jefferies’ Brent Thill

Amazon is our top tech pick for 2022: Jefferies' Brent Thill

📉 Amazon Stock Technical Analysis

Amzn Stock

The positive divergence between large players volume and price is bullish. The long-term trend is neutral, but the short-term trend is negative. AMZN is one of the better-performing stocks in the Internet & Direct Marketing Retail industry, it outperforms 82% of 80 stocks in the same industry. AMZN is currently trading in the middle of its 52-week range. The S&P500 Index however is currently trading near new highs, so AMZN is lagging the market.

There is a resistance zone ranging from 3357.88 to 3454.56. This zone is formed by a combination of multiple trend lines and important moving averages in multiple time frames.

There is a support zone ranging from 3309.04 to 3312.75. This zone is formed by a combination of multiple trend lines in the daily time frame. There is also a support zone ranging from 3203.08 to 3203.08. This zone is formed by a combination of multiple trend lines in multiple time frames.

Although the technical rating is bad, AMZN does present a nice setup opportunity. Prices have been consolidating lately and the volatility has been reduced. There is a support zone below the current price at 3312.75, a Stop Loss order could be placed below this zone.

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