These are the 5 worst performing stocks in the S&P 500 index this year. How will they fare in 2023?

This year has been a rough one for investors in general, with war, inflation and rapidly rising interest rates leading to volatile markets and big losses in widely held blue chip stocks. The S&P 500 index is down 17% this year, and about 70% of the companies in that index can count losses. And those losses are big!

Since the beginning of the year, 21 companies in the S&P 500 have lost at least 50%, and the five biggest losers have dropped more than 65% in percentage terms. These are the five S&P 500 companies that have seen the biggest share price declines so far in 2022, erasing a combined market value of $720 billion, according to Koyfin data.

1. Meta Platforms $META-2.3%

Meta is the world's largest online social network with 2.5 billion monthly active users. Users interact with each other in a variety of ways, exchanging messages and sharing news, photos and videos. The company's ecosystem consists mainly of Facebook, Instagram, Messenger, WhatsApp and the many features that surround these products. Users can access Facebook on mobile devices and computers. Advertising revenue accounts for more than 90% of the company's total revenue, with 50% coming from the US and Canada and 25% from Europe. With gross margins above 80%, Meta operates with a net margin of 30%-plus.

• Market value decline: $614.2 billion
• YTD performance: -64.10%

Despite its terrible performance in 2022, Meta remains a top 10 stock on many brokerage platforms. Some investors believe the company's massive Metaverse bet could pay off significantly. Others consider Meta attractively valued with its core social media business.

Meta should have an excellent opportunity to monetize WhatsApp, its messaging app with more than 2 billion daily users,in the near term. With the popularity of Reels' short videos, Facebook ads could grow. And maybe, just maybe, Metaverse will fulfill the vision of Meta CEO Mark Zuckerberg. If it does, it will now be a once-in-a-decade stock buying opportunity.

2. Match Group $MTCH+0.0%

Match Group, Inc. provides dating products around the world. The company's portfolio of brands includes Tinder, Match, Meetic, OkCupid, Hinge, Pairs, PlentyOfFish and OurTime as well as various other brands. The company was founded in 1986 and is headquartered in Dallas, Texas.

• Market value decline: $25.2 billion
• YTD performance: -68.81%

Match Group - especially Tinder - gets much of its revenue outside the United States, and the stronger dollar has led to lower international revenue in the past few quarters. This caused Match Group's revenue growth to slow to just 1% in the third quarter. On a currency-neutral basis, it grew 10% year-over-year.

With such a significant drop in shares, Match Group now has a market capitalization of just $12 billion. This gives the stock a trailing price-to-operating income ratio of 18.75, which is not expensive given Match Group's historical revenue growth. Over the past 12 months, the company generated $3.2 billion in revenue. Increase that by 10% next year and you'll have $3.5 billion in revenue or more than $1 billion in operating income if margins can return to 30%. That seems achievable if Tinder re-accelerates growth and Hinge continues its impressive trajectory.

3. SVB Financial Group $SIVB

SVB Financial Group is a diversified financial services company, offering a variety of banking and financial products and services. It operates through four segments, Global Commercial Bank, SVB Private Bank, SVB Capital and SVB Securities. The Global Commercial Bank segment provides commercial banking products and services, including lending, treasury management, foreign exchange, trade finance, and other financial products and services. It operates through 56 branches in the United States and internationally. The company was founded in 1983 and is headquartered in Santa Clara, California.

• Market value decline: USD 27.0 billion
• YTD performance: -68.96%

The stock price of SVB Financial Group, better known as Silicon Valley Bank, has fallen about 69% so far in 2022. The bank has been a huge disappointment in what is usually a fairly lackluster financial services sector, and this year's decline has nearly erased three years of above-average returns. Silicon Valley Bank's customer base is going through challenging times right now as interest rates are rising aggressively. But the main reason for the steep decline has to do with poor financial management.

4. Align Technology $ALGN+0.2%

Align is the world's leading manufacturer of clear dental aligners, having introduced the technology in 1998 with the launch of its Invisalign brand aligners. Since then, Invisalign has become a household name and has treated more than 10 million patients with malocclusion (misaligned teeth) through orthodontists and dentist-led treatment plans. The company maintains a dominant share of the clear aligner market, despite introducing direct competitors to consumers following the expiration of key patents beginning in 2017. Align also manufactures intraoral scanners (iTero) used for orthodontic treatment and restorative dentistry procedures (digital models for crowns, veneers and implants).

• Market value decline: USD 36.9 billion
• YTD performance: -69.92%

Things don't look great for Align today, but with the stock trading around levels not seen since April 2020, now may be a good time for long-term investors to buy the stock. And if there are signs of a recovery next year, Align stock could see a big rally. With a 30-fold gain, the stock is trading well below its five-year average of 54.

5. Generac Holdings $GNRC+0.7%

Generac Power Systems designs and manufactures power generation equipment that serves the residential, commercial and industrial markets. It offers backup generators, portable generators, lighting, outdoor power equipment and a suite of clean energy products. Sales generated in the United States account for the majority of total sales.

• Market value decline: $16.7 billion
• YTD performance: -73.52%

Last August, intentional power outages caused nearly 1 million households to go without power for two days. In February 2021, Texas utilities shut off power to more than 10 million homes for several days when Winter Storm Uri hit the state. These weather-related issues were a boon to Generac's domestic emergency business.

Long-term trends in residential and commercial solar could also affect Generac over the next decade. Global installed solar capacity is expected to grow at 12.7% per year through 2027.

Source: Business Insider, Yahoo Finacne, Fool, Everything money

DISCLAIMER: All information provided here is for informational purposes only and is in no way an investment recommendation. Always do your own analysis.