TLDR
- Wolfe Research names Meta, Uber, DoorDash, and Shopify as top large-cap internet buys
- Mega-cap internet stocks are trading well below their three-year historical valuation medians
- TD Cowen reiterates a Buy on Meta with an $820 price target, citing AI-driven ad growth
- Uber launched driverless robotaxi operations in Dubai and agreed to acquire Blacklane
- DoorDash analysts cut price targets due to a new fuel subsidy program but kept Buy ratings
Meta, Uber, DoorDash, and Shopify have been named top large-cap internet stock picks by Wolfe Research. The firm says current valuations are attractive after a broad pullback across the sector.
Mega-cap internet stocks are trading three turns below their three-year historical median valuations. Large caps are also sitting well below their own historical medians.
Wolfe Research says fundamentals remain healthy despite the compression. The firm is focused on stocks with the best chance of upward earnings revisions, margin expansion, and resilience to macro pressures.
Meta Platforms
Wolfe Research rates Meta Outperform with an $800 price target. Shares have underperformed the S&P 500 by 12 points since its January earnings report.
The firm expects first-quarter revenue to beat analyst estimates by low-single digits. For the second quarter, Wolfe sees management guiding revenue to $61 billion, above the $60 billion Street consensus.
AI improvements through tools like Lattice, GEM, and Andromeda are expected to drive that growth. The Muse Spark large language model launch is seen as a key catalyst.
TD Cowen also reiterates a Buy with an $820 price target. The firm’s revenue and operating income estimates are 1% and 6% above consensus for the first quarter.
Meta’s revenue grew 22% year-over-year to $201 billion, with an 82% gross profit margin. Earnings are scheduled for April 29.
On the regulatory side, the European Commission is planning to order Meta to reverse a policy restricting rival AI chatbots on WhatsApp.
Uber Technologies
Wolfe Research rates Uber Outperform with a $90 price target. Shares have underperformed the S&P 500 by two points since February earnings.
First-quarter bookings are expected to beat estimates by low-single digits. Second-quarter guidance is expected to come in at least in line with consensus.
Uber recently agreed to acquire global chauffeur service Blacklane. The company is also reviewing a potential controlling stake in Kakao Mobility.
Uber launched fully driverless robotaxi operations in Dubai through its app. Analysts also see more aggressive share buybacks as a potential catalyst in the second half of 2026.
DoorDash
Wolfe Research rates DoorDash Outperform with a $195 price target. Shares have underperformed the S&P 500 by 12 points since February.
The firm expects first-quarter gross order value and EBITDA to beat estimates. Proprietary survey data shows DoorDash gaining market share in grocery delivery.
Several analysts, including those at BTIG, cut price targets citing costs from a new driver fuel subsidy program. All maintained Buy or Outperform ratings.
Shopify
Wolfe Research previously downgraded Shopify near $165 per share. The firm now views the current $112 level as attractive.
First-quarter gross merchandise volume, revenue, and operating income are all expected to beat Street estimates. New products like Shop Campaigns, Audience, and Sidekick, plus a growing Google partnership, are seen as key drivers.
Wells Fargo and Deutsche Bank have lowered price targets but kept positive ratings. Piper Sandler reiterated an Overweight rating, citing a strong revenue growth outlook.
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