Meta Named the Best Mega-cap Stock for 2023 In JPMorgan Survey

Chatterbox Moo wrote a column · Jan 11, 2023 15:11

According to a survey conducted by $JPMorgan (JPM.US)$, the $S&P 500 Index (.SPX.US)$ is likely to deliver a "flattish" performance in 2023. The broker's buy-side survey showed that 45% of investors see S&P 500 being +/-5% in 2023 while 18% see it down 5-15%.

The survey had a special focus on the U.S. internet sector, which is seen outperforming the S&P 500 in 2023. 41% of respondents named $Meta Platforms (META.US)$ as the company they expect will perform the best this year, followed by $Amazon (AMZN.US)$ at 36%, though e-commerce is expected to be the best-performing subsector. Streaming-video company $Netflix (NFLX.US)$ is expected to be the worst-performing megacap. 24% of respondents said Netflix will be the worst-performing mega-cap stock, followed by $Alphabet-A (GOOGL.US)$ (24%).

All three companies are coming off sizable drops; Meta fell 64% in 2022, making it one of the 10 worst performers among components of the S&P 500 Index, which itself fell 19%. Amazon fell 50% in its biggest one-year drop since 2000 and Netflix fell 51%, though it is up nearly 90 per cent off a June low.

The JPMorgan survey shows investors see three primary tailwinds for the Internet sector, including attractive valuations, easing year-over-year comparisons, and improved cash flows and margins. The respondents cited macroeconomic concerns – including rates and inflation – as the biggest expected headwinds, along with a deceleration in revenue and growth.

Mooers, which stock do you think will perform best in 2023? Do you agree that Meta could be the best one?