In 2023, it was a special year for U.S. stocks according to the S&P 500 index, especially technology stocks which benefited from the growing demand for artificial intelligence products. The end of the decline caused by lockdown measures due to the COVID-19 pandemic also helped lift the stocks of transportation companies in the S&P 500 index. Meanwhile, the demand for COVID-19 vaccines and treatments declined due to the end of the pandemic, negatively impacting the stocks of companies listed in the index that provided these services.
Winners
The year 2023 saw a significant rise in technology stocks, particularly those related to artificial intelligence. The demand for AI products surged, as this new technology became “the next big thing” on Wall Street in 2023. This trend propelled several stocks that achieved the highest gains in the S&P 500 index this year.
Nvidia
No other company benefited from the AI boom like Nvidia Corp. (NVDA). The company’s stock rose by over 254%, the highest growth rate in the S&P 500 this year. The company’s market value surpassed one trillion dollars, making it the fifth most valuable company in the United States.
Nvidia faced some notable hurdles when the Biden administration imposed new export restrictions to China in October, a measure that Nvidia stated would affect its business. In that week, the company released a chip that complies with export regulations.
Meta Platforms
Meta Platforms Inc. (META), the parent company of Facebook, faced challenges in 2023, but this did not prevent its stock price from nearly tripling this year.
The company also received a boost from artificial intelligence, but the main driver behind the excitement surrounding this social media giant came in February when CEO Mark Zuckerberg announced that 2023 would be “the year of efficiency” for Meta after its stocks were penalized in 2022. The steps taken by the company to reduce costs significantly bolstered Meta’s shares.
Royal Caribbean Group
The end of lockdowns and other COVID-19 related restrictions was a boon for the travel industry, especially cruise companies that were effectively closed for months during the pandemic.
The stocks of Royal Caribbean Group (RCL), along with its competitors Carnival Corp. (CCL) and Norwegian Cruise Line Holdings Ltd. (NCLH), surged thanks to pent-up demand from travelers who had been confined at home due to the virus. Royal Caribbean’s stock rose by over 165%, while Carnival Corp.’s stock increased by over 132% and Norwegian’s year-end was approximately 69% up.
Builders FirstSource
Some may not think that technology would drive the growth of a building materials provider, but that’s what happened with Builders FirstSource Inc. (BLDR).
During the year, the company increased its digital investments, and grew through acquisitions and product diversification. Furthermore, its shares rose after the announcement this month from S&P Dow Jones that it would be added to the S&P 500 index on December 18.
BLDR’s shares increased by over 155% in 2023.
Uber
Like cruise companies, Uber Technologies Inc. (UBER) also benefited from the reopening of activities following the end of COVID-19 restrictions. In addition to Builders FirstSource, the app-based transportation service gained from its inclusion in the S&P 500 index in mid-December. The company’s stock rose by approximately 142% for the year.
Losers
While the overall market advanced, inflation, rising interest rates, and reduced demand for COVID-19 treatments were among the factors that led to significant declines in some stocks in 2023.
FMC
Corp.
FMC Corp. (FMC) shares have fallen more than 49% this year, wiping out much of the gains made in the past few years. The company’s stock took a hit in November after the unveiling of a strategic plan. The company introduced new products and said it would review its strategy regarding non-core assets.
Enphase
Enphase Energy Inc. (ENPH) faced typical issues for many companies in the green energy sector. The solar equipment manufacturer was affected by rising interest rates and soaring home prices, making it more expensive to add solar panels to homes. Additionally, a change in the law in California, the largest state for solar panels, dealt a blow to the industry. The state reduced the payments homeowners receive from utility companies for feeding power back into the grid, making the presence of solar panels less attractive.
Enphase lost about 47% of its value this year.
Dollar General
A change in consumer behavior caused by significant inflation impacted Dollar General Corp. (DG). The company’s stock dropped approximately 45% this year, as the company stated that shoppers are spending more money on food and low-margin goods rather than on products that bring in higher cash.
Dollar General also mentioned that it will be reintroducing employees who exited back into service in waves due to its reliance on self-checkout, which has led to increased theft.
Moderna and Pfizer
The waning of the pandemic wasn’t necessarily good news for COVID-19 vaccine and drug manufacturers. Shares of the largest vaccine providers, Moderna Inc. (MRNA) and Pfizer Inc. (PFE), stumbled as fewer people needed vaccines and many chose not to get booster shots. This led to a decline in their stock prices of approximately 44% in 2023.
Both companies tried to pivot away from COVID-19 and work on producing other drugs.
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Source: https://www.investopedia.com/s-and-p-500-biggest-gainers-and-losers-of-2023-8420814
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