Alphabet and Meta are still BofA's most valuable stocks

Bank of America (BofA) reiterated its positive stance on Alphabet (NASDAQ:GOOGL) and Meta Platforms (NASDAQ:META), which it sees as the most valuable stocks in the internet sector.

BofA still recognizes that Wall Street estimates for Alphabet/Meta ad revenues are probably too high for 2023. Moreover, increased TikTok competition and AVOD could account for over $5 billion of industry growth. As a result, the bank lowered its GOOGLE and META forecasts to reflect mild recession and currency headwinds. These downgrades were subsequently reflected in lower price targets: $196 per share for META shares and $114 per share for GOOGL shares. EPS (earnings per share), on the other hand, is expected to be more resilient given cost-cutting activities. "While the outlook for 2023 ad revenues has deteriorated over the past 6 months, we think negative sentiment and lower valuations make for a more attractive investment backdrop, with monetization of Alphabet's Performance Max and Meta's Reels likely to be key revenue drivers in 2023." Follow Global Economic Developments on Social Media! Click here to follow Ieconomy official Facebook account! Click here to follow Ieconomy official Instagram account! Click here to follow Ieconomy official Twitter account!