If you’re interested in investing in the stock market and making money, consider the TOP 10 rising or falling stocks of 2022. This list comprises the stocks with the most significant gains or losses over the last year. It provides insight into potential investments that may offer the returns you seek. Finally, consider the risks associated with each stock and decide if it is the right choice for you. Check out the list and see if any of these stocks could be a suitable investment.
Table of contents:
TOP 10 rising or falling stocks of 2022: Major Stock Indices Posted Double-Digit Drops in 2022
2022 wasn’t a good year for the stock market. The main indexes collapsed, with S&P going down 20%, Dow Jones losing over 10% of its value, and Nasdaq 100 crashing by 35%. The main reason for the strong bear market was the interest rate hikes. Across the globe, central banks, e.g. Chinese Banks, were pushed to tighten the monetary policy as inflation was dangerously accelerating. Fortunately, the falling prices proved an excellent opportunity for margin traders to profit.
How was it possible? I’ll explain it in this article and rank the TOP 10 rising or falling stocks of 2022.
The Best (and The Worst) Performing Stocks of 2022:
1) Tesla (-61% year-to-year)
I want to start this “TOP 10 rising or falling stocks of 2022″ rank with Tesla, a manufacturer of electric vehicles. The company closed the year on a high note after its shares hit a two-year low, surpassing Meta to become the worst-performing stock among the most valuable tech firms in 2022.
It occurs at a time when Elon Musk is under fire from investors for spending too much time on the social media firm and has sold off almost $23 billion (€21 billion) worth of Tesla stock this year to pay for his purchase of Twitter. The recent 11% decline in Tesla stock brought the company’s share price to a 73% decline since its all-time high in November 2021.
On December 22, Musk announced on Twitter Spaces that he would suspend selling Tesla stock for 18 to 24 months. Musk claimed in a Twitter exchange with a Tesla shareholder that “people would increasingly shift their money out of equities into cash, causing markets to decline” due to the Federal Reserve rising interest rates.
At the same time, Tesla halted production at its Shanghai facility on Saturday, moving forward with a predetermined schedule to halt the majority of activity at the plant in the final week of December.
Tesla’s most recent production reductions in Shanghai came amid an uptick in infections following China’s decision to abandon its zero-COVID policy in December 2022. Businesses have praised the decision, even though it has hampered production outside of Tesla.
2) Coinbase (-87% year-to-year)
A platform for buying and selling cryptocurrencies and decentralized apps is provided by Coinbase, one of the biggest cryptocurrency exchanges in the world. Retail customers, organizations, developers, business owners, and other cryptocurrency market players are all served by it. In 2022, the corporation reported losses for three straight quarters as third-quarter revenue dropped 53% to $576 million.
In 2022, the prices of cryptocurrencies and related assets, such as non-fungible tokens (NFTs), plummeted. It caused exchanges like Coinbase to lose money on transactions. Supply-chain problems have made cryptocurrency mining equipment costly and hard to find, further dampening transactions.
Trust in even the most reputable cryptocurrency exchanges has lately been weakened by the collapse of the exchange FTX.
3) Apple (-26% year-to-date)
With sales of $123.9 billion in the first quarter, the corporation had its most significant Q1 ever. This pattern persisted into the fourth quarter. Foreign currency rates, however, also hurt Apple, reducing its overall Q3 revenue figures by 3%. Then there were the claims that, due to lower-than-expected sales, the business had to reduce its production orders for the iPhone 14 Plus.
However, there was anticipation that this would indicate more customers were choosing Apple’s more expensive iPhone 14 Pro range, increasing Apple’s average iPhone selling price.
Unfortunately, COVID lockdowns in China and worker protests at Foxconn’s most significant iPhone production delayed Apple’s ability to deliver its Pro devices to customers promptly, lengthening wait times by weeks.
Nevertheless, Apple’s status as a market leader in the IT sector and persistent demand for its goods and services helped guarantee that its shares finished 2022 in a stronger position than many of its rivals.
4) Microsoft (-27.34% year-to-date)
With a good performance from its crucial Intelligent Cloud business, which includes its Azure platform, Microsoft (MSFT) kicked out in 2022. While the division grew during the year, it started to slow down compared to the highs it reached in 2021.
According to the company’s report, Microsoft’s Intelligent Cloud business division’s year-over-year growth in the third quarter of 2018 decelerated to 20% from 31% in the prior quarter. Mainly, azure growth decreased to 35% in Q1 from 50% in the same period the previous year.
In addition, the corporation faced declining digital ad revenues and a sharp decline in PC sales from pandemic-related highs. Microsoft listed many significant challenges that hurt its bottom line during the year, including the conflict in Ukraine, fluctuating currency exchange rates, and COVID lockdowns in China.
5) Qualcomm (-37.44% year-to-date)
Cristiano Amon, President and CEO of Qualcomm Inc., talked on January 4, 2022, in Las Vegas, Nevada, at the company’s press conference for CES 2022 at the Mandalay Bay Convention Center. The world’s largest annual consumer electronics trade exhibition, CES, will take place in person from January 5 to 7; several businesses have yet to decide whether to go or will only participate digitally, owing to worries about the sharp increase in COVID-19 cases.
Undoubtedly, the corporation had to lower its quarterly projections throughout the year and kept announcing a decline in handset sales. However, Qualcomm’s plan to provide chips to other industries, like as the automotive and server businesses, might help the company wean itself from its reliance on the sales of smartphones.
The news that Qualcomm will supply most of the 5G processors for Apple’s iPhones in 2023 was arguably one of Qualcomm’s greatest surprises in 2022. According to Bloomberg, Apple had initially planned to use its chips instead of Qualcomm’s, but technical issues with chip manufacturing prevented that from happening as anticipated.
6) AMD (-53.31% year-to-date)
If Apple tops the list of best-ish performers despite a more than 25% decline in its share price, you can be sure that the worst-performing stocks had a bad year. You’d be right, too, considering AMD’s (AMD) year-to-date decline of 53.31%.
The chip manufacturer experienced many of the same issues as its competitors in 2022, including a significant decline in PC sales from the pandemic’s peak when everyone was in the market for a new computer. Like Qualcomm, AMD had to lower its fiscal year revenue projections to reflect the decline in PC sales in 2022.
7) Meta (-64.41%)
This year, things for Meta (META) could only worsen, earning the “lucky” seventh place on my TOP 10 rising or falling stocks of 2022 rank. A slew of negative stories caused the company’s stock price to plunge an astounding 64.41% year to date. First, Meta was alarmed by the year-long fall in revenues from digital advertisements. The impact of Apple’s iOS privacy improvements is made worse by this. It has reduced Meta’s total sales since it debuted in 2021,
The amount of money the business invests to become a metaverse-first corporation has also drawn criticism. Meta will invest significantly more money by the end of this year. Just after spending $10 billion on the project in 2021.
While TikTok continues to attract adolescents and, increasingly, older users, Facebook is losing some of its appeal among younger users. Just 32% of the 1,316 youths who participated in the Pew Research Center research from the August report used Meta’s Facebook app.
All of this resulted in Meta dismissing 11,000 workers in November. If any business needs to make a significant turnaround in 2023, it’s Mark Zuckerberg’s Meta.
8) Disney (-45.6% year-to-date)
The dismal fiscal fourth-quarter earnings announcement was the main factor in November’s 8.1% decline in Disney stock. The company’s shares dropped 13% on November 9 due to missing top and bottom-line projections. Even though its theme parks benefited from the economic recovery, adjusted profits decreased. With a $4 billion loss in its streaming business at the end of fiscal 2022, investor excitement for Disney+ has subsided.
Following that, the business announced a hiring freeze. Later in November, Disney shocked investors by removing Bob Chapek from the CEO position. Then the company reassigned Bob Iger to take over.
Iger is credited with helping the firm redefine itself and aiding the stock‘s recovery by acquiring Pixar, Marvel, Star Wars, and 20th Century Fox during his previous tenure. Iger spent little time returning to work. He axed Chapek’s senior aides and stated his desire to reorganize the firm to place narrative at the core of operations. This resulted in giving investors grounds to believe in the recovery.
9) Lockheed Martin (+37% year-to-date)
Finally, a company that gained a lot. Typically, stock pickers seek out companies that will outperform the market as a whole. You may benefit significantly if you purchase high-quality enterprises at a reasonable price.
For instance, long-term shareholders of Lockheed Martin Corporation have seen their shares climb by 52% over the past five years, outperforming the market’s (excluding dividends). The more recent gains, however, have been less spectacular, with stockholders only seeing a 40% rise (including dividends).
In light of this, it’s essential to determine if the company’s core fundamentals have consistently driven long-term performance or whether there have been some inconsistencies.
In the last five years, Lockheed Martin has increased its earnings per share at a 12% annual rate. The year-over-year increase in earnings-per-share EPS is more striking than the 9% share price increase during the same period.
It’s important to note that we saw a lot of insider buying in the most recent quarter, which we view favorably. On the other hand, the patterns in sales and profitability are significantly more valuable indicators of the firm. Check out this interactive graph of Lockheed Martin’s profits, revenue, and cash flow to learn more about financial performance.
10) BP (+44% year-to-date)
Shares of BP have shown excellent gains in 2022. They have gained roughly 44% this year, which is an exceptional result compared to other British companies. How much does BP have left in the tank? Should we purchase any more stocks in January 2023?
The Q3 results for the company provide evidence of this. It reported $8.2 billion in underlying replacement cost profit during the quarter, up from $3.3 billion in Q3 2021. Additionally, BP generated 8.3 billion in operating cash flow, up from $6 billion a year earlier. Finally, they ended the quarter with $3.5 billion in excess cash flow, up from $933 million a year earlier.
The long-term growth potential is a concern for me as a long-term investor. Because of the significant supply/demand mismatch in the world’s energy markets, BP is now doing well. The picture for oil and oil firms over the long term is less clear. Will oil prices remain stable?
It’s important to note that BP intends to transition to a renewable energy business. By 2030, it wants to have a 50-gigawatt capacity for renewable energy. That it will be able to carry out these ambitious restructuring goals, however, is not guaranteed.
Falling Stock Prices: How To Profit From It?
Thanks to apps like SimpleFX, a margin trader can profit from a stock price going down by selling the stock short:
- When an investor sells a stock short, he/she borrows shares of the stock from another investor and sells them on the open market.
- If the price of the stock then decreases, the short seller can repurchase the stock at a lower price. Then he/she can return the borrowed shares to the investor and keep the difference as profit.
For example, suppose an investor sells 100 shares for $50 per share. Then the stock price drops to $40 per share. The investor can then repurchase the stock for $4,000. They can then return the borrowed shares to the lender and keep the difference between the sale price and the buy–back price as profit, which in this case would be $1,000.
However, it is essential to note that selling a stock short carries significant risks. The potential losses can be unlimited if the stock price increases instead of decreasing. This is because when an investor sells a stock short, they borrow the stock from a broker, sell it, and then wait to repurchase it at a lower price. If the stock price goes up instead of down, traders will have to buy back the stock. They will have to do it at a higher price than they sold it for, thus losing money. Therefore, short selling should only be done by experienced investors who fully understand the risks and have a solid strategy in place.
TOP 10 rising or falling stocks of 2022. Will 2023 Be Even Better?
2023 is shaping up to be an exciting year for financial markets. These include stocks, bonds, commodities, and real estate. Before investing, investors should evaluate each asset class’s potential returns, risk, and liquidity. They should also know the associated costs, such as trading fees, brokerage commissions, and taxes. In particular, the technology sector will likely remain a hotbed of activity, with innovations and developments driving growth and disruption.
2023 is shaping to be a good year for financial markets, with investments in various sectors likely to bring excellent returns. Healthcare, emerging, and energy stock markets are expected to be particularly strong. The ongoing global economic recovery should boost market confidence and increase investments. Furthermore, the increasing demand for technology and digitalization creates new opportunities for investing in cybersecurity, e-commerce, and cloud computing. Overall, as investors, you keep in mind the TOP 10 rising or falling stocks of 2022 rank and be well-positioned to take advantage of them in 2023.