JPMorgan- Surveyed Investors Claim This Tech Stock As Their Favourite For 2023; Surprised Many!
Tech stocks have taken quite a beating in the markets globally, but one company has emerged as still the best bet for investors.
A JPMorgan survey that it conducted on its investors threw quite a surprise, for the year 2023, the best Tech & Internet stock of choice has emerged to be none other than Meta.
Meta emerged as the winner despite the fact that it has had a terrible year. However, the survey, which polled a host of internet investors to determine which is their favourite performer and what they think are the industries that will continue to strive in 2023, threw quite a curveball.
The survey, which focuses on institutional investors (those who buy stocks in large quantities for mutual fund houses etc.), is conducted every year; however, the survey does not reveal the participants.
The poll revealed that 41% said Meta is the company they believe will perform the best in 2023, the result of the survey did help the stocks of Meta to perform slightly better on the stock exchanges.
Tech And Internet Stocks
Meta
The year nonetheless to say has been pretty rough for tech and internet stocks in general globally. However, when it came to Meta platforms which own Facebook, Instagram, and Whats App, they were singled out as the best internet stock out of all the “mega-cap” companies, i.e. those with valuations of over $200 billion in the upcoming year.
While 36% singled out Amazon as their next favourite and came in at number second position amid large internet stocks, Netflix was posited as the worst performer this year.
For those who may not know, Internet stocks mean a company that primarily does business related to the internet.
Surprise!!!
However, several industry watchers were left surprised at Meta being in the number one position, considering Meta’s performance has not been exactly steller – its stock is down roughly 60% since January 2022.
Meta has been facing some challenges in 2022; for one, investors were outraged over its multi-billion money dump into virtual reality.
Increased interest rates led the company to make its first large-scale layoffs in November last year and also posted its first decline in revenue in quarterly revenues in the month of July.
Further adding to Meta’s woes is that its advertising business is also suffering since Apple’s introduction of its new privacy rules.
When compared to its peers, Meta’s stock performance has been the worst, and it showed up in the top 10 biggest stock price drops out of the companies in the S&P 500 in 2022, which fell by almost 19% in that time period.
Will 2023 be better for Internet Stocks?
They are some who say that internet stocks may perform better in 2023. The reasons that some of the investors believe will be so is apprised to the fact that these stocks (companies like Meta and others) will benefit from higher company valuations, improved cash flow due to layoffs and better quarterly reports after a year of reporting dips, in revenue compared to 2021.
Meanwhile, it is not just Meta, Amazon has also done massive layoffs of its employees ( 18,000), and its stocks have been down around 43% since January 2022.
Netflix, which came in as the worst performer by the investors that were polled, also had an equally brutal year marked by layoffs; it reported its first subscriber loss, lost half of its market cap and a similarly dull and difficult add market.
Conclusion: The survey result may come as a surprise to many, but it goes on to prove that Meta still has a commanding position as compared to its peers, irrespective of how its stocks have been performing in the markets in the last year and is one of the top most stocks that investors think still worth it!
