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Bloomberg
Meta Platforms Inc. is expected to be the top-performing mega-cap internet stock this year, according to a JPMorgan survey of investors, suggesting a rebound for the Facebook parent after its worst year on record.
According to the survey, 41% of respondents named Meta as the company they expect will perform the best this year, followed by Amazon.com Inc. at 36%, though e-commerce is expected to be the best-performing subsector. Streaming-video company Netflix is expected to be the worst-performing megacap.
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 falls as much as 19%.
Amazon fell 50% in its biggest one-year drop since 2000 and Netflix fell 51%, though it is up nearly 90% off a June low.
The group saw widespread pressure as the Federal Reserve aggressively raised interest rates to combat inflation, weighing on the multiples of so-called growth companies, while also raising the prospect of a recession. Meta saw outsized weakness as it struggled with a changed privacy policy at Apple Inc., which diminished its ability to sell targeted ads on iPhones. Investors also questioned Meta’s controversial plan to invest heavily in the metaverse.