As the second quarter begins, Bank of America believes stocks like Meta Platform and Spotify are positioned to outperform. The first quarter was marked by macroeconomic uncertainty and geopolitical volatility, marked by heightened tensions in the Middle East. The S&P 500 spiked in April trading and the start of the second quarter, but is still down 3.8% in 2026. On Wednesday, Bank of America detailed its second-quarter high-conviction short-term buys in U.S. stocks, saying the stocks were “long on a market rebound.” This list of ideas is based on the bank’s view that “these stocks could be important market and business-related catalysts in the coming quarters.” Bank of America publishes the list at the beginning of each quarter. The stocks will remain on the list for the duration, but some may be re-elected to the basket next quarter. Selected names from Bank of America’s latest list are shown in the table below. One of the names on the list was the huge meta of “The Magnificent Seven.” The social media giant recently suffered two significant court losses regarding child safety. Stock prices will fall by about 13% in 2026. However, the bank’s $885 price target suggests the stock could rise about 54% from Thursday’s closing price. Analyst Justin Post said Meta’s recent exit creates an attractive opportunity for investors. “In the near term, the risk of litigation headlines may persist, but as legal and appellate proceedings will likely take several years to develop, we do not expect a material impact on our revenue growth or profitability,” he said. “We believe current valuations underestimate the AI opportunity for Meta, including the tangible benefits AI is already bringing across Meta’s core advertising business.” Audio streamer Spotify, which has fallen almost 16% this year, also made the list. Bank of America’s $750 price target represents a 53% upside for the stock. Analyst Jessica Lief Ehrlich wrote that Spotify was a top candidate for the bank in the media and entertainment space, and argued that fears of AI disruption surrounding its name were overblown. “We believe continued earnings and (free cash flow) growth is driven by multiple factors, including an extended runway for net subscriber additions, higher prices, increased advertising, and greater adoption of incremental services such as podcasting and audiobooks, which are likely to become more prevalent in the future,” Ehrlich wrote. “We view SPOT’s recent volatility as a particularly attractive buying opportunity, especially as concerns about AI disruption appear to be exaggerated in the near to medium term.” Bank of America also named peer bank Citigroup as another name on the list. Analyst Ebrahim Poonawalla’s $140 price target suggests Citigroup stock could rise 21%. “We believe Citigroup is well-positioned to outperform heading into its first-quarter earnings release and investor day on May 7,” Poonawalla wrote. Other stocks featured on Bank of America’s list of top ideas include Thermo Fisher, Mongo DB, Amer Sports and Bootburn.
