The broker notes that after a strong stock market year in 2020, the Amazon stock has done worse than the S&P 500 last year, rising only 4% against a jump of 30% for the benchmark.
An underperformance that the broker attributes to supply problems and labor shortages, difficulties called according to him to be resolved this year.
After the ‘massive’ investments made by the technology group, BofA says it anticipates an acceleration in profit margins over the period 2023-2025, a prospect which he believes justifies a privileged status within the sector.
The acronym FANG stands for the gloves of the Internet that are the American groups for Facebook, Amazon, Netflix and Google (Alphabet group).
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