Tech stocks were the hardest hit in 2022 but, in 2023, they could slightly outperform the S & P 500, according to investors surveyed by JPMorgan. The bank conducted a buyside survey of about 74 long-term investors and hedge funds to gauge their sentiment on internet stocks in 2023. About 43% of the investors that participated indicated they expect internet stocks to rise more than 5% this year, while 30% expect “flattish” performance. Views were reversed, however, for the S & P 500, with 45% of investors expect the benchmark index to end little changed, while 30% think it will post growth of more than 5%. More investors, 41%, identified Meta Platforms as the mega-cap tech stock most likely to succeed than any other. Amazon was runner up, with 36% of respondents’ vote. They also indicated they think Meta will have the best “overall turnaround” story for the year and that it’s their preference for online ads. On the flip side, Netflix is the most likely to show the worst performance this year, according to 43% of survey respondents. Inflation, the dominant investing narrative in 2022, will continue to be a top headwind this year, according to the survey, along with slower revenue and growth concerns. However, investors also agree that attractive valuations, easier comparisons and improved margins will propel the tech group higher.
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