Citing their durability in the case of an economic downturn, JPMorgan has ranked Meta Platforms (META, Financials) and Spotify Technology (SPOT, Financials) as its top selections in the internet space.
JPMorgan attributed Meta's strength to its reputation as a top open-source artificial intelligence platform, suggesting that even as economic constraints rise, its technological benefits will remain valuable. Analysts mentioned Spotify's Year of Accelerated Execution initiative, meant to boost revenue across its music, audiobook, video, and podcast operations.The study separated the internet sector into subsectors depending on expected performance during a recession. While e-commerce, online travel, and digital advertising were noted as most vulnerable, ridesharing, food delivery, cloud services, and streaming were judged more resilient.Among them, online travel was considered as particularly susceptible as it depends on discretionary spending, which JPMorgan said is highly correlated with GDP growth.As of 2:12 p.m. GMT-4 Monday, Meta shed 4.16% to $579.72 and Spotify dropped 4.70% to $569.90, mirroring the decline in the bigger IT industry despite bank support.
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