JPMorgan's top internet analyst shared his latest outlook on the internet sector and identified top stock picks headed into 2022. This year saw a "bifurcation of Covid-19 impact on internet equities," JPMorgan's Doug Anmuth said in a note at the end of November. Some internet companies benefited from the stay-at-home trends, while others were impacted by the pandemic, but are re-emerging stronger. Key themes affecting the internet sector this year include the economy reopening, online ad acceleration and e-commerce growth, according to JPMorgan. Plus, Big Tech names are looking for their next growth drivers. "Mega caps continue to invest in big L-T (longterm) opportunities as they move beyond their core," Anmuth said. With these trends in mind, JPMorgan named six stocks as the best ideas in 2021 heading into next year. Take a look at their picks. Topping the list is retail giant Amazon . E-commerce growth and strength in cloud computing have boosted the stock this year, according to JPMorgan. "AMZN is the most diversified mega cap across revenue & profit," Anmuth said. "Accelerated secular shift and investment cycle positions AMZN well for future growth." Anmuth believes Amazon's stock could gain more than 28% by the end of 2022. Next on the list of best ideas is Facebook-parent Meta Platforms . Meta saw solid advertising growth this past year, JPMorgan said. Plus, new features on its social media platforms such as Instagram Reels provide additional surfaces to monetize, according to the firm. Plus, Meta's valuations look compelling at recent levels given the company's earnings-per-share multiple, JPMorgan said. The firm has a $390 price target on Meta for December 2022, which is 27% higher than Friday's close. Also notching a spot on JPMorgan's list is the streaming platform Netflix. The stock benefited from stay-at-home trends, but JPMorgan said it is poised to outperform in the long run given Netflix's stellar slate of content coming down the pipeline. "Streaming platforms, including NFLX, benefitted as COVID-19 accelerated the secular shift to SVOD (streaming video on demand) providers, a trend we believe persists as consumers continue shifting to DTC (direct-to-consumer) subscriptions," Anmuth said. Within the streaming space, "NFLX remains the clear overall leader & is well-positioned," according to Anmuth. Netflix stock is poised to rally almost 25% by December 2022, according to Anmuth. Other names on JPMorgan's list of top internet stock picks are Twitter , Uber and Peloton . —CNBC's Michael Bloom contributed to this report.
Mateusz Slodkowski | SOPA Images | LightRocket via Getty Images
JPMorgan's top internet analyst shared his latest outlook on the internet sector and identified top stock picks headed into 2022.