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Price Surge: The Most Active Stocks of 2022

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When the year comes to an end, it’s always a good idea to look back at the most actively traded equities without the need to look for its price range. These aren’t stocks that skyrocketed after a buyout or fell after a significant earnings miss. On most days, these were the equities that were at the top of the most actively traded lists. Here’s a review of the top names, what happened to them in 2022, and what we may expect from them in 2023.

Tesla

In 2022, Tesla’s stock experienced dramatic swings up and down. It is currently down over 50% year to date. In comparison, the Nasdaq has dropped 29% within the same time span. Elon Musk, the CEO of Tesla, is thought to be the source of the stock price oscillations because he sold a big percentage of his Tesla stock to help pay for the purchase of Twitter.

Tesla had a profitable year in sales and delivered over 900,000 vehicles to consumers worldwide over the first three quarters, but it wants to reduce manufacturing in 2023. In the first week of December 2022, Tesla delivered its first set of Semi trucks to Pepsi, helping to raise the stock.

The forecast for Tesla in 2023 is uncertain, but the business is not going anywhere. It may take some time for its stock to settle into a consistent price range, but Tesla has the potential to be a consistent performer in the future.

Apple

In 2022, Apple faced a number of hurdles, including supply and labor issues in China and the cancellation of additional iPhone 14 production plans. However, Apple’s 20% drop in stock price is due to the overall sell-off of tech companies rather than internal issues with the computer giant. The corporation has performed admirably in terms of preserving a significant cash balance, maintaining demand for its iPhone and iMacs, and boosting its service sales.

Apple’s answer to production challenges in China has been to shift iPhone production to other nations. This diversification will help the corporation overcome any supply chain problems.

The corporation is also significantly investing in augmented and virtual reality technologies, but it remains to be seen whether Apple can transform a niche product into an industry-dominating one, as it has done in other fields of technology. Finally, Apple can easily weather a product flop since its core products are always in demand, and its stock is widely regarded as a strong long-term investment.

Microsoft

Microsoft’s stock price plummeted during 2022, with values ranging from $344 a share on the high end to $213 on the low end. It has lost 28% of its value year to date, although this is due to a widespread tech sell-off rather than poor performance. Azure, Microsoft’s cloud computing subsidiary, continues to perform successfully, with an operating system share of 76% of all PCs globally. It also has a substantial quantity of cash on hand.

With the acquisition of digital advertising business Xandr, a relationship with Netflix, growing its cloud computing section, and a prospective merger with Activision, the company plans to make significant growth in 2023. The only cloud on Microsoft’s horizon is the Activision acquisition, which is currently being challenged by the Federal Trade Commission. Otherwise, Microsoft appears to be a decent performer in terms of performance and stock value in 2023.

Nvidia

Until early 2022, Nvidia’s graphics processing units (GPUs) were in high demand. Its stock price has been steadily declining as demand for its GPUs has slowed, with the implosion of the Bitcoin bubble and inflation eroding consumers’ willingness to pay exorbitant prices for Nvidia’s products. Nvidia’s product inventories are expanding while revenues are decreasing.

It’s important to remember that the PC market is cyclical, and it takes time for graphics technology to progress to the point where upgrading a GPU makes sense. Nvidia is used to weathering similar cycles and is looking to expand into other fields such as virtual reality. Its stock price is now higher than it was at the end of 2017, indicating that the company has solid governance and performs well over time.

Exxon stock began trading in 2022 at $68 per share and has since risen to $103.54 in the first week of December. The stock has risen mostly this year due to increases in energy costs, resulting in substantial earnings for the corporation. It intends to spend between $23 billion and $25 billion of its income on capital investments. Exxon also intends to invest $17 billion in programs to minimize greenhouse gas emissions, carbon capture and storage, and alternative fuels.

Exxon intends to be at the forefront of this transformation in the energy generation business. Its stock price is linked to the profitability of fossil fuels in the short term, but it is using its scale and might to turn alternative energies and lower-emission products into profit centers. Analysts expect the stock to reach a median price of $120 per share in 2023, but fluctuations in commodity prices could influence that projection. Energy stocks are typically recession-proof and excellent for long-term holding in a stock portfolio, and Exxon fits the bill admirably.

Netflix

Overall, 2022 was a difficult year for Netflix’s stock price as viewers spent less time at home, alternative streaming services continued to cut into market share, and higher costs drove consumers away. Netflix’s woes began when the business reported a loss of 200,000 subscribers in the first quarter of 2022, the first decrease in a decade. Despite the fact that this was a very little loss, it frightened investors into believing that Netflix would struggle to maintain a profit.

These and other concerns were allayed when Netflix launched ad-supported membership choices in 12 countries. Netflix expects to attract 4.5 million new subscribers in the fourth quarter of 2022, according to user revenue, which provides a more accurate picture of future growth. Netflix demonstrates that it is not going to go down without a fight and that it is agile enough to discover methods to boost income and continue to expand in the long run. The stock and long-term value of the company will increase as the company matures.

Amazon

Amazon’s business units performed well in 2022, but the company’s stock price did not. This is due in part to the general weakness of the market. Many investors are fleeing high-growth tech firms for safer options as interest rates increase to combat inflation. Another issue is that Amazon announced during its third-quarter conference call that it expected a sluggish holiday season.

Amazon stock is down over 47% year to date, trading at $90.55 as of this writing. The picture for 2023 is mixed, with internet sales anticipated to be weak and a recession looming. The key for Amazon is its Web Services division, which is still expanding, albeit at a slower rate than previously. If this segment can regain its footing and the anticipated recession is brief and light, this stock could break out before the end of the year.

Meta

In terms of stock performance, Meta, the parent company of Facebook, Instagram, and WhatsApp, has had a down year. After beginning the year at $338.54, the stock has dropped 66% to $114.71. In early November, the year’s low was $88.91.

There are several reasons for the stock’s decline in value, but the two most significant are ad revenue problems and the company’s excessive spending on constructing the metaverse. Ad revenue is falling as a result of the bad economy and the assumption that the United States would enter a recession in 2023. Furthermore, Meta is grappling with Apple’s privacy restrictions, which prohibit the tracking of customers’ personal data between websites.

There is no end in sight to CEO Mark Zuckerberg’s huge expenditure on the metaverse. He believes this is the next great thing and is putting all of Meta’s eggs in one basket. The Reality Labs division lost $9.4 billion in the first nine months of 2022. The division lost $6.8 billion in the first nine months of 2021. During the most recent earnings call, Zuckerberg stated that the company’s losses would climb significantly in the coming year. In order to offset part of this investment, the corporation announced layoffs.

The outlook for the tech titan in 2023 remains bleak. With ad revenue projected to be flat and increasing spending on the metaverse, the chances of this stock breaking out are minimal.

Disney

In 2022, Disney has been on a roller coaster ride. Investors were nonetheless optimistic about the company’s streaming business and forthcoming movie releases early in the year. But, by the end of the year, everything had changed.

Disney posted fourth-quarter earnings that fell short of expectations. Furthermore, the business warned of slower streaming growth in early 2023, which is problematic because this segment is not yet profitable. CEO Bob Chapek was fired unexpectedly, and former Disney CEO Bob Iger was reinstated.

Iger intends to not just make the streaming service profitable, but also to strengthen the company’s other divisions. His term will be limited to two years this time, and he will play a key role in identifying his successor.

Disney stock has dropped nearly 40% this year. At this pricing, this could be a stock worth investing in as the company improves its efficiency ahead of 2023.

Alphabet

Alphabet, like Meta, is primarily reliant on advertising revenue to subsidize other business lines until they can become profitable. The issue is that revenue declines in a sluggish economy due to reduced advertising spending. This is what Alphabet experienced in 2022.

When the company released its third-quarter results, investors were taken aback by the drop in ad income. Google Cloud and Additional Bets, two other business divisions, also raised their losses.

The stock is currently down 35% year to date, which is not as awful as many of the other stocks on this list. However, given the negative economic outlook for 2023, there is little reason to assume the stock will regain any meaningful amount in the near future.

In conclusion

The equities that were most actively traded in 2022 are anticipated to be highly traded in 2023. Even the underperformers will most likely return to the top of the list in 2023. This is due to the fact that they are large-cap stocks with proven management teams that have outperformed over time. With a low stock price, investors will be willing to create positions in the hopes that the price would rise in the near term.

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