PUBLISHED THU, MAY 26 2022 9:22 PM EDT
Goldman Sachs has named four “compelling” buying opportunities in tech after a mixed bag of first-quarter earnings. The stocks offer solid topline growth and are more likely to prevail amid the current market volatility, the bank said.
Goldman named its “top picks focused on large caps that can weather [the] volatile environment.”
The analysts’ “top pick for 2022” is Amazon, which they said is exposed to a “multitude” of broader growth trends including advertising, cloud computing and media consumption. Amazon’s demand remains strong, according to the bank, while the majority of the e-commerce sector has seen weakening demand.
The bank has a price target of $3,700 on the stock, which closed at $2,221.55 on May 26 — a potential upside of 66.6%.
Goldman also likes ride hailing firm Uber.
While the company’s better-than-expected results have not led to a meaningful follow through in its share price, Goldman believes the company has the potential to achieve topline growth of more than 20% over the next 3-5 years from its platform exposure to transport and local commerce, Sheridan said.
The bank has a price target of $55 on the stock, which closed at around $23 on May 26, representing a potential upside of 139%.
Facebook parent Meta also made Goldman’s list. “We see a much better landscape for growth and margin stabilization in [the second half of 2022] as management’s comments on the Q1 earnings call struck a positive tone on growth, investments & capital returns,” Sheridan said.
Goldman’s price target of $300 on Meta implies a potential upside of 57% to the stock’s closing price of around $191 on May 26.
Rounding off Goldman’s list is Alphabet. The bank sees the company’s digital advertising platform as a “strong performer,” and believes the company’s other units, such as Google Cloud and “Other Bets,” could scale and achieve sustained profit growth in the coming years.
Goldman has ascribed a price target of $3,000 on the stock. Shares of Alphabet closed at around $2,155 on May 26, suggesting that the stock could still rise a further 39.2%, according to Goldman’s estimates.