Key Highlights
- Wolfe Research identifies Meta, Uber, DoorDash, and Shopify as premier large-cap internet investment opportunities
- Major internet companies currently valued significantly below their three-year average multiples
- TD Cowen maintains positive outlook on Meta with $820 target, highlighting artificial intelligence advertising momentum
- Uber expands autonomous vehicle operations in Dubai and pursues Blacklane acquisition
- DoorDash faces price target reductions following fuel subsidy initiative, though analyst sentiment remains constructive
Wolfe Research has identified Meta, Uber, DoorDash, and Shopify as standout investment opportunities within the large-cap internet sector. According to the research firm, the recent sector-wide decline has created compelling entry points based on historical valuation metrics.
The broader mega-cap internet category is currently valued approximately three turns beneath its three-year median multiple. Similarly, large-cap peers are trading substantially below their historical valuation benchmarks.
Despite this valuation compression, Wolfe Research maintains that underlying business fundamentals remain solid. Their selection criteria emphasizes companies positioned for positive earnings estimate revisions, operating margin improvement, and demonstrated ability to navigate macroeconomic headwinds.
Meta Platforms
Wolfe Research assigns an Outperform rating to Meta accompanied by an $800 price objective. The stock has lagged the S&P 500 index by 12 percentage points following its January quarterly results announcement.
The research house anticipates Meta’s first-quarter revenue will surpass Wall Street projections by low-single digit percentages. Looking ahead to the second quarter, Wolfe expects company guidance targeting $61 billion in revenue, exceeding the current Street consensus of $60 billion.
Artificial intelligence enhancements delivered through platforms including Lattice, GEM, and Andromeda are projected to fuel this revenue acceleration. The introduction of the Muse Spark large language model represents a significant potential growth driver.
TD Cowen similarly maintains its Buy recommendation while setting an $820 price objective. The firm’s first-quarter projections for revenue and operating income stand 1% and 6% above consensus estimates, respectively.
Meta’s revenue climbed 22% on a year-over-year basis to reach $201 billion, delivering an impressive 82% gross profit margin. The company is slated to report quarterly results on April 29.
From a regulatory perspective, the European Commission is preparing to mandate that Meta reverse its policy limiting competing AI chatbot access on the WhatsApp platform.
Uber Technologies
Wolfe Research maintains an Outperform stance on Uber with a $90 price target. Shares have trailed the S&P 500 by two percentage points since the company’s February earnings disclosure.
Analysts project first-quarter bookings will exceed expectations by low-single digit margins. Management guidance for the second quarter is anticipated to align with or surpass current consensus forecasts.
Uber recently finalized an agreement to purchase Blacklane, the premium global chauffeur platform. Additionally, the company is evaluating a potential controlling investment in Kakao Mobility.
The ride-hailing leader has initiated fully autonomous robotaxi service in Dubai, accessible directly through its mobile application. Market observers also point to the possibility of accelerated share repurchase activity as a favorable catalyst during the latter half of 2026.
DoorDash
Wolfe Research rates DoorDash as Outperform with a $195 price target. The stock has underperformed the broader S&P 500 index by 12 percentage points since its February report.
Analysts anticipate the company’s first-quarter gross order value and EBITDA will exceed Street projections. Proprietary survey research indicates DoorDash is capturing additional market share within the grocery delivery vertical.
Multiple analysts, including the team at BTIG, have reduced their price objectives, citing expenses associated with a newly implemented driver fuel subsidy initiative. However, all firms retained their Buy or Outperform recommendations.
Shopify
Wolfe Research previously downgraded Shopify when shares traded near $165. The firm now characterizes the current $112 price level as an attractive valuation.
First-quarter projections for gross merchandise volume, revenue, and operating income all point toward results exceeding consensus estimates. Product innovations 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 both adjusted their price targets downward while preserving positive ratings. Piper Sandler reaffirmed its Overweight rating, emphasizing the company’s robust revenue growth trajectory.
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