Quick Overview
- Wolfe Research identifies Meta, Uber, DoorDash, and Shopify as premier large-cap internet investment opportunities
- Internet mega-caps currently trade significantly below their historical three-year valuation averages
- TD Cowen maintains Buy rating on Meta with $820 target, emphasizing AI-powered advertising expansion
- Uber initiates autonomous robotaxi service in Dubai and announces Blacklane acquisition agreement
- DoorDash faces price target reductions following fuel subsidy introduction, though Buy recommendations persist
Wolfe Research has identified Meta, Uber, DoorDash, and Shopify as premier large-cap internet investment opportunities. According to the firm, valuations have reached compelling levels following widespread sector weakness.
Internet mega-caps are currently trading approximately three turns beneath their three-year historical valuation medians. Similarly, large-cap peers are positioned substantially below their respective historical benchmarks.
Despite this valuation compression, Wolfe Research emphasizes that underlying business fundamentals continue showing strength. The firm’s selection criteria prioritize companies demonstrating the greatest potential for positive earnings adjustments, operating margin improvements, and durability amid macroeconomic headwinds.
Meta Platforms Stock
Wolfe Research assigns Meta an Outperform rating alongside an $800 price objective. Following the company’s January quarterly report, the stock has lagged the S&P 500 index by 12 percentage points.
The research firm anticipates Meta’s first-quarter revenue performance will surpass Wall Street projections by a low-single-digit percentage. Looking toward the second quarter, Wolfe predicts management will provide revenue guidance of $61 billion, eclipsing the Street’s $60 billion forecast.
Advanced AI capabilities through systems including Lattice, GEM, and Andromeda are projected to fuel this expansion. The introduction of the Muse Spark large language model represents a significant growth catalyst.
TD Cowen separately maintains its Buy recommendation with an $820 valuation target. The firm’s first-quarter projections for revenue and operating income exceed consensus estimates by 1% and 6%, respectively.
Meta’s revenue climbed 22% on a year-over-year basis to reach $201 billion, accompanied by an 82% gross profit margin. The company is scheduled to report earnings on April 29.
From a regulatory perspective, the European Commission is preparing to mandate that Meta reverse its policy limiting competing AI chatbots on the WhatsApp platform.
Uber Technologies Stock
Wolfe Research assigns Uber an Outperform rating with a $90 price objective. The stock has trailed the S&P 500 by two percentage points since releasing February earnings.
First-quarter bookings are projected to exceed analyst forecasts by a low-single-digit margin. Second-quarter outlook is anticipated to align with or surpass consensus expectations.
Uber recently finalized an agreement to purchase Blacklane, a premium global chauffeur service provider. The ride-hailing giant is simultaneously evaluating a potential controlling investment in Kakao Mobility.
Through its mobile application, Uber has initiated completely autonomous robotaxi services in Dubai. Analysts additionally anticipate more aggressive share repurchase activity could materialize during the latter half of 2026.
DoorDash Stock
Wolfe Research assigns DoorDash an Outperform rating with a $195 price target. Since February, shares have underperformed the S&P 500 index by 12 percentage points.
The firm forecasts first-quarter gross order value and EBITDA will exceed Wall Street estimates. Proprietary survey research indicates DoorDash is capturing additional market share within the grocery delivery segment.
Multiple analysts, including the team at BTIG, have reduced their price targets following the announcement of a new driver fuel subsidy initiative. Nevertheless, all maintained Buy or Outperform recommendations.
Shopify Stock
Wolfe Research previously downgraded Shopify when shares traded near $165. The firm now considers the current $112 price level an attractive entry point.
First-quarter metrics including gross merchandise volume, revenue, and operating income are all projected to surpass Street forecasts. Emerging products such as Shop Campaigns, Audience, and Sidekick, combined with an expanding Google collaboration, represent critical growth engines.
Wells Fargo and Deutsche Bank have adjusted their price targets downward while preserving positive ratings. Piper Sandler reaffirmed its Overweight stance, highlighting a robust revenue expansion trajectory.
