Investors are anticipating a return to normalcy in the economy and the stock market following the 2020 health crisis. However, Bank of America (ticker: BAC) analyst Haim Israel says the pandemic will have a lasting effect on the world and the companies changing it. Companies and consumers are generating more data than ever; big governments are taking a more proactive approach in global economies; and a younger generation of investors are now focused on social distancing, the digital economy and environmental sustainability, Israel says. Here are seven of Bank of America’s top tech stock picks amid the health crisis and for the post-pandemic world:
Amazon shares are up more than 65% through early August despite the crisis, a reflection of how perfectly positioned its major businesses were for a shelter-in-place economy. In the second quarter, Amazon reported blowout earnings and revenue numbers while much of the rest of the retail sector struggled. Online grocery sales tripled, Amazon Web Services revenue increased 29%, and net income roughly doubled from a year ago. Analyst Justin Post says the pandemic accelerated long-term shifts to online retail and cloud computing, two markets where Amazon dominates. Bank of America has a “buy” rating and $3,560 price target for AMZN stock.