In this video, I will be talking about what is arguably the best FAANG stock to buy in 2022, Amazon (AMZN). Unlike other megacap companies, Amazon has remained fairly flat. You can find the video below, but here are some highlights.
- Two potential catalysts for 2022 would be a spinoff of Amazon Web Services (AWS) and a long-awaited stock split.
- Amazon Web Services could be worth $1 trillion alone, with more than $60 billion in annual sales. That means you are paying about $700 billion for the rest of the business, which includes the online retail business, offline shopping, advertising, Amazon Prime Video, Audible, and logistics, including warehouses, trucks, and planes. Seems like a good deal.
- It is also important to note that the faster-growing segments are now generating $56.5 billion in sales vs. the slower ones, which are generating $54.2 billion.
- According to Fortune Business Insights, the global cloud computing industry is expected to grow from $219 billion in 2020 to about $800 billion by 2028.
- While the retail part of the business is still generating the most revenue, it's a low-margin one, whereas AWS is a "money-printing machine."
- The e-commerce side of the business has been facing some headwinds due to COVID-19. Once those headwinds ease up, the company will be set to outpace the market in 2022 and onward.
- The average analyst price target is $4,137, representing a 26% upside.
For full insights, do watch the video below, and consider subscribing.
*Stock prices used are the closing prices of Jan. 10, 2022. The video was published on Jan. 11, 2022.
