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Investors can take advantage of the recent market sell-off by picking up shares of companies such as Meta and Netflix , according to JPMorgan. Technology stocks have been battered this year after the recent market meltdown, which drove the S & P 500 into correction territory last week and has the Nasdaq Composite still trading in a correction , a term signifying that an index is down more than 10% from its recent high. A slew of once high-flying names have plummeted as the artificial intelligence trade lost steam. Investors are also parsing through soft economic data and constantly changing news around tariff and trade policies. Against this backdrop, JPMorgan listed a few names from its internet coverage that are attractive at their current levels. The firm also highlighted some that could act as defensive plays if the broader macroeconomic environment worsens. “To be clear, the Internet space is heavily consumer facing, and therefore there is no macro immunity, only degrees of resilience,” analyst Doug Anmuth wrote in a Tuesday note to clients. He added that, “by sub-sector, we believe e-commerce, online travel, & digital ads would be most impacted by tougher macro, while rides & food, cloud, & streaming subscriptions would prove relatively more resilient.” Finding opportunities Megacap tech giant Meta and streaming company Spotify are the firm’s top picks for investors looking to buy the dip. Anmuth reiterated his overweight rating and $727 price target on Meta, implying a 25% potential jump in its share price from Tuesday’s close. The Facebook parent has established itself as the “leading open source AI platform,” he said, citing the expected release of Meta’s Llama 4 model and other products that could help it drive additional revenue. “Overall, we’re bullish on META’s AI leadership, which we believe warrants heavy capex & infrastructure spend, & we expect greater AI monetization to support revenue trends in 2025,” Anmuth said. “We expect 2025 revenue growth to be driven by core optimizations, AI investments (Advantage+), Andromeda, video unification, Reels, & Click-to-Message.” Meta shares have plunged nearly 13% this month, but is about flat year to date. META 1Y mountain Meta stock performance. Spotify, Anmuth’s other favored stock after the market’s recent pullback, is rated overweight with a $730 price target. That implies 29% potential upside for the stock, which is up more than 27% this year, significantly outperforming the broader market. Anmuth believes Spotify is living up to CEO Daniel Ek’s promise for a “year of accelerated execution,” as it looks to drive the growth of its music business and improve its audiobooks, video and podcasts. That should support deeper engagement and monetization across the company, Anmuth said. “We expect Spotify’s offering to evolve as it introduces new paid subscription tiers, bundles music and non-music content, and provides a richer audio and visual content catalog, all of which support long-term pricing power. We look for these efforts to translate into a more tailored music experience, including superfan tiers,” he wrote in the note. Finding safety Defensive stocks to look at in this environment include Netflix , eBay and Chewy , according to JPMorgan. Netflix and eBay are up 4.3% and 5.3%, respectively, this year, while Chewy has lost 4.5%. Netflix could experience a modest level of subscription churn and advertising headwinds if consumers and marketers pull back on spending, according to Anmuth. But he believes macro headwinds could also benefit the company’s ad tier plan as subscribers seek out more value from the service. “We believe the 2025 content slate is strong,” Anmuth said. “We also expect NFLX to prove more resilient vs. prior periods of macro volatility given the Ad Tier ($7.99/mo) provides a high value offering at a widely accessible price point.” With eBay, JPMorgan thinks investors can count on the marketplace operator to successfully navigate tariff risks compared with the rest of the e-commerce landscape. The firm pointed out that a significant portion of eBay’s gross merchandise value is derived from preowned and refurbished items, which allows for less supply chain risks and a place for consumers to find cheaper items.
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