These two stocks are ‘good fundamental stories going into 2022’

By: Wajeeh Khan
Wajeeh Khan
Wajeeh is an active follower of world affairs, technology, an avid reader, and loves to play table tennis in… read more.
on Dec 1, 2021
  • Mark Mahaney reiterates Facebook and Amazon as his top two picks for 2022.
  • The Evercore ISI's expert recommends buying the recent dip in the two stocks.
  • Tech giants were among the hardest hit on Tuesday except for Apple Inc.

Meta Platforms Inc (NASDAQ: FB) and Amazon.com Inc (NASDAQ: AMZN) were two of the weakest links in the mega-cap technology names this year. But Evercore ISI’s Mark Mahaney, whose new book titled “nothing but net” is out today, says the story could be much different in 2022.

Mahaney’s remarks on CNBC’s ‘Squawk Box’

On CNBC’s “Squawk Box”, Mahaney recommended buying the recent dip in FB and AMZN. Stating his reasons for being bullish on the two stocks, he said:

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The valuation is relatively compelling in both names. I think both are good fundamental stories going into 2022. They can be a recovery play since stocks are somewhat dislocated. That’s your opportunity. On corrections like these, you buy.

Facebook and Amazon have been two of the highest-quality internet stocks for years, and Mahaney expects it to remain true for another five years as well. Shares of Amazon and Meta are down 5.0% since mid-November.

A day earlier, the British regulator ordered Meta to sell Giphy, citing the acquisition could harm U.K. advertisers and social media users.  

Tech stocks were hit hard on Tuesday

Tech giants were among the hardest hit on Tuesday as investors continued to pull back on inflation and Omicron-related uncertainty. One exception, however, was Apple Inc (NASDAQ: AAPL) that closed up 3.5%. Mahaney noted:

In times like these when you have uncertainty over viruses, inflation, and rising rates, when people get back into technology, they rotate first to the highest quality. Apple falls into that.

The iPhone maker is now outperforming the tech-heavy Nasdaq Composite, which was in the red yesterday, by nearly 5.0%. Also on Wednesday, Apple renewed its bid to halt court-ordered App Store changes.  

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