Key Highlights
- Wolfe Research designates Meta, Uber, DoorDash, and Shopify as premier large-cap internet investments
- Current valuations for mega-cap internet companies sit significantly below three-year median levels
- TD Cowen maintains Buy rating on Meta with $820 target, highlighting AI-powered advertising expansion
- Uber commenced autonomous robotaxi services in Dubai and announced Blacklane acquisition plans
- DoorDash faces reduced price targets from analysts following driver fuel subsidy announcement, though Buy ratings remain
Wolfe Research has identified Meta, Uber, DoorDash, and Shopify as premier large-cap internet investment opportunities. Analysts point to compelling valuations following a recent sector-wide decline.
Mega-cap internet companies currently trade three turns beneath their three-year historical median valuations. Large-cap names similarly hover well under their respective historical benchmarks.
Wolfe Research emphasizes that underlying business fundamentals stay robust despite valuation compression. The research firm concentrates on companies positioned for upward earnings revisions, margin enhancement, and ability to weather macroeconomic challenges.
Meta Platforms
Wolfe Research assigns Meta an Outperform rating alongside an $800 price target. The stock has lagged the S&P 500 by 12 percentage points following its January quarterly results.
Analysts project first-quarter revenue will surpass consensus estimates by a low-single-digit percentage. Looking to the second quarter, Wolfe anticipates management will provide revenue guidance of $61 billion, exceeding the Street’s $60 billion expectation.
Advancements in artificial intelligence through platforms such as Lattice, GEM, and Andromeda are projected to fuel revenue expansion. The introduction of the Muse Spark large language model represents a significant growth opportunity.
TD Cowen maintains its Buy recommendation with an $820 price objective. The firm’s first-quarter projections for revenue and operating income stand 1% and 6% above consensus figures, respectively.
Meta’s revenue climbed 22% year-over-year to reach $201 billion, accompanied by an 82% gross profit margin. The company will report earnings on April 29.
Regarding regulatory developments, the European Commission plans to mandate that Meta reverse its policy limiting competitor AI chatbots on WhatsApp.
Uber Technologies
Wolfe Research assigns Uber an Outperform rating with a $90 price target. Shares have trailed the S&P 500 by two percentage points since the February earnings release.
First-quarter bookings are projected to exceed estimates by a low-single-digit margin. Second-quarter guidance is anticipated to align with or surpass consensus expectations.
Uber recently announced plans to acquire Blacklane, a global chauffeur service provider. The company is evaluating a potential controlling interest in Kakao Mobility as well.
The rideshare giant introduced fully autonomous robotaxi service in Dubai through its platform. Analysts view more substantial share repurchase programs as a potential growth catalyst during the latter half of 2026.
DoorDash
Wolfe Research rates DoorDash Outperform with a $195 price objective. The stock has underperformed the S&P 500 by 12 percentage points since February.
Analysts expect first-quarter gross order value and EBITDA to surpass estimates. Proprietary survey research indicates DoorDash is capturing additional market share within grocery delivery.
Multiple analysts, including BTIG, have trimmed price targets in response to expenses associated with a newly implemented driver fuel subsidy program. All analysts preserved their Buy or Outperform recommendations.
Shopify
Wolfe Research previously moved Shopify to a lower rating near the $165 price level. The firm now considers the current $112 valuation appealing.
First-quarter metrics including gross merchandise volume, revenue, and operating income are all projected to exceed Street forecasts. Emerging products such as Shop Campaigns, Audience, and Sidekick, combined with an expanding Google partnership, are identified as primary growth catalysts.
Wells Fargo and Deutsche Bank have adjusted price targets downward while maintaining constructive ratings. Piper Sandler reaffirmed its Overweight stance, emphasizing a robust revenue growth trajectory.
