Amazon is top 'FANG' stock at BofA, as headwinds should ease in 2022
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Amazon (NASDAQ:AMZN) is named as the top "FANG" stock for 2022 at Bank of America, as the investment firm believes the headwinds the tech giant saw in 2021 should dissipate this year.
Analyst Justin Post, who has a buy rating and a $4,450 price target on the Andy Jassy-led company, said concerns such as supply chain and labor bottlenecks, multiple compression, decelerating e-commerce growth and others should "ease throughout the year." Coupled with the firm's outlook for strong growth and margin expansion between 2023 and 2025 after a "massive infrastructure investment cycle," Post said Amazon is its top big tech stock.

Amazon (AMZN) shares are down more than 3% to $3,145.54 in early Monday trading.
"We have a positive outlook for 3-5 year eCommerce growth given sub-20% penetration, and, with market share gains in 2021, we see Amazon as well positioned for sector growth reacceleration in 2Hâ22 and into 2023," Post said in a note to investors.
"The shift to the Cloud is also still in its early stages, with only 5-15% of IT spending off-premises. AWS had a strong 2021, with three straight quarters of accelerating revenue growth, and with revenue dollar growth well above peers."
Post also noted that Amazon's (AMZN) other growth drivers, such as Amazon Web Services, advertising and third-party commissions, are likely to generate more than $70 billion in earnings power in 2023, with the prospect for "material margin improvement next year."
Amazon (AMZN) was named one of Jefferies' top stock picks for 2022, noting that although higher labor costs are likely to persist, "valuation multiples for the coverage are about 33% below where they were a year ago."