Meta Platforms (META) is expected to be the top-performing internet stock in 2023, according to a new survey by bank JPMorgan Chase (JPM).
Investors expect the Facebook parent company to rebound after its worst year on record in 2022, declining 60% in the last 12 months to $132.99 U.S. per share.
According to the survey, 41% of respondents named Meta Platforms as the internet stock they expect will perform the best in 2023, followed by Amazon (AMZN) at 36%.
Investors polled by JPMorgan said they expect streaming company Netflix (NFLX) to be the worst-performing technology stock this year.
Amazon’s stock declined 50% in 2022, its biggest one-year drop since 2000, while Netflix’s stock fell 51% last year.
Meta’s stock has been pressured following a changed privacy policy at Apple (AAPL) that hurt its ability to sell targeted advertisements on iPhones. Investors have also questioned Meta’s controversial plan to invest in the virtual world known as the “Metaverse.”
In all, 43% of survey respondents expect internet stocks to be up more than 5% this year, while 30% expect them to be flat.
Investors continue to see three primary tailwinds for the internet sector, including attractive valuations, easing year-over-year comparisons, and improved margins.
The biggest concerns related to internet stocks continue to be higher interest rates and inflation, as well as a deceleration in revenue growth.
The Nasdaq index that is laden with technology stocks has fallen 29% over the past year, leading declines among all U.S. indices.
