With interest rates rising and global economies "hopefully opening" in 2022, Evercore ISI analyst Mark Mahaney has 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 Inc (NASDAQ: AMZN), Uber Technologies Inc (NYSE: UBER), and Meta Platforms Inc (NASDAQ: FB).
Within the large-caps, the analyst's top picks, in order, are Roku Inc (NASDAQ: ROKU), Chewy Inc (NYSE: CHWY), and Spotify Technology SA (NYSE: SPOT).
Within the mid-cap space, Mahaney's top picks, in order, are Bumble Inc (NASDAQ: BMBL), Wix.com Ltd (NASDAQ: WIX), and Duolingo Inc (NASDAQ: DUOL).
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.
For Roku, he views the company's average revenue per user upside as being underappreciated and its supply chain headwinds as transitory.
Mahaney views Bumble as a "clear reopening play" with upside to the Street's payer and EBITDA margin estimates.
Price Action: AMZN shares closed lower by 0.82% at $3,393.39 on Monday.
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