SA readers go into 2022 collecting megacaps, BRZE and a new cannabis play; drop DIDI
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As 2021 came to an end, SA readers bet that some of the biggest drivers over the past year will remain strong in 2022. Over the past week, they loaded up on megacap stocks, like Apple (NASDAQ:AAPL), Meta (NASDAQ:FB), Microsoft (NASDAQ:MSFT), Google (NASDAQ:GOOGL) and Amazon (NASDAQ:AMZN), an analysis of portfolio additions and deletions showed.

Readers also considered some new names as well. They picked up recent IPO Braze (NASDAQ:BRZE) based on strong results from its first earnings report as a public company.
At the same time, SA investors looked for new ways to make money from out-of-favor trends. For instance, they turned to AFC Gamma (NASDAQ:AFCG) as a fresh method to profit from the cannabis sector.
Looking at the end of 2021, readers also cleaned out their portfolios of some of the year's deadweight. This included cutting Didi Global (NYSE:DIDI), a disastrous Chinese IPO that is slated for delisting in the near future.

Megacaps

2021 was the year of the megacaps. Strength in stocks like Apple (AAPL), Microsoft (MSFT) and Google (GOOGL) pushed the S&P 500 to an advance of about 27% for the year. This came about as AAPL rose 34%, MSFT climbed 51% and GOOGL jumped more than 65% over the course of the past 12 months.
Even with the outsized gains by some of the world's most high-profile companies, some SA readers went into 2022 fortifying their portfolios with these megacaps.
AAPL, MSFT and GOOGL were among the most added stocks for the last week of year in terms of absolute numbers. At the same time, they were integrated into portfolios at an impressive rate. All three saw a pace of additions of more than 2:1 compared to deletions.
The hunger for megacaps went beyond these three 2021 standouts. Even the laggards among the world's biggest companies drew attention. Meta (FB), which began the year as Facebook, fell short of the S&P 500's annual return, rising 23% in 2021. Meanwhile, Amazon (AMZN) hovered near the flat line, ending the year higher by just 2%.
Even so, readers picked up these names in high numbers as 2022 began. FB and AMZN both saw addition/deletion rates of at least 2:1 last week.

Braze 

A breakout earnings report brought significant attention to new IPO Braze (BRZE). As a result, SA readers added the stock to their portfolios last week at a rate of more than 9:1 compared to deletions.
BRZE came public in mid-November, pricing an IPO at $65 per share. The week before Christmas saw the customer-engagement platform release its first earnings report since joining the Wall Street family. The company's loss narrowed from last year on revenue that soared 63%.
Shares rallied to a post-IPO high of $98.78 shortly after BRZE's public debut. However, they quickly came off that level.
The earnings report gave the stock a major boost, allowing it to reach a close as high as $79 on Dec. 30. However, it remains well off its early peak.

AFC Gamma

In general, cannabis companies have faced skepticism lately. In the stock market, shares of many firms in the sector are hovering near their 52-week lows. Among SA readers, the space has fallen into disfavor, with portfolios shedding these once trendy names.
However, readers still see value in the industry. They have just changed focus to ancillary businesses, taking advantage of cannabis growth in a more indirect way.
Take AFC Gamma (AFCG) as an example. The company, which came public in March, represents a mortgage REIT, making its money by structuring and underwriting loans for licensed cannabis industry companies.
SA readers saw value in this approach to cannabis investing. In the last week of December, they added the stock to their portfolios at a rate of about 8.5:1 compared to removals.


DiDi Global

Given the focus on China's stepped-up regulatory aggression in 2021, it's no surprise that the year closed with SA readers saying "goodbye" to one of the country's most high-profile names. Didi Global (DIDI), which came public in 2021 only to announce within a matter of months that it planned to delist, represented one of the most heavily deleted stocks last week.
Readers dumped DIDI at a rate of about 1.5:1 compared to additions.
DIDI ended 2021 by setting a low for the year, touching $4.74 before closing the year at $4.98. Shares of the Chinese ride-hailing service came public in late June at a price of $14 and rallied to a high of $18.01. However, the trajectory has been generally lower since then.
Want more insight into what's in store for 2022? Look at SA contributor Chris Lau's top 22 stocks for the new year.