Key Highlights
- Investment firm Wolfe Research identifies four premier large-cap internet companies as top purchase opportunities
- Large-scale internet equities currently trade significantly below their three-year average valuation metrics
- TD Cowen maintains bullish stance on Meta with $820 target, emphasizing artificial intelligence advertising momentum
- Uber expands autonomous vehicle services in Dubai while pursuing Blacklane acquisition
- DoorDash faces price target adjustments following driver fuel subsidy announcement, though positive ratings persist
Wolfe Research has designated Meta, Uber, DoorDash, and Shopify as premier investment opportunities within the large-cap internet sector. According to the research firm, appealing entry points have emerged following widespread valuation compression throughout the industry.
The mega-cap segment of internet equities currently trades approximately three turns beneath their three-year median valuation levels. Similarly, large-cap companies find themselves positioned substantially below their historical average metrics.
Despite the valuation contraction, Wolfe Research emphasizes that underlying business fundamentals remain solid. The firm’s investment strategy concentrates on identifying companies demonstrating the highest probability for positive earnings revisions, operational efficiency gains, and durability against 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.
The research firm anticipates first-quarter revenue figures will surpass analyst projections by a low single-digit percentage. Looking toward the second quarter, Wolfe projects management will provide revenue guidance of $61 billion, exceeding the Street’s $60 billion expectation.
Artificial intelligence enhancements delivered through platforms such as Lattice, GEM, and Andromeda are anticipated to fuel this expansion. The introduction of the Muse Spark large language model represents a significant potential catalyst.
TD Cowen maintains its Buy recommendation alongside an $820 price objective. The firm’s revenue and operating income projections exceed consensus estimates by 1% and 6% respectively for the first quarter.
Meta’s revenue climbed 22% on a year-over-year basis to reach $201 billion, accompanied by an 82% gross profit margin. The company will report quarterly results on April 29.
Regarding regulatory developments, the European Commission is preparing to mandate that Meta reverse its policy limiting competing AI chatbot access on WhatsApp.
Uber Technologies
Wolfe Research maintains an Outperform rating on Uber with a $90 price objective. Shares have trailed the S&P 500 by two percentage points since the company’s February earnings announcement.
First-quarter booking volumes are projected to exceed estimates by a low single-digit margin. Second-quarter guidance is anticipated to meet or surpass current consensus projections.
The ride-hailing giant recently announced plans to acquire Blacklane, a global chauffeur service provider. Additionally, the company is evaluating the possibility of securing a controlling interest in Kakao Mobility.
Uber has introduced fully autonomous robotaxi services in Dubai, accessible directly through its mobile application. Market observers also identify accelerated share repurchase programs as a potential positive catalyst during the latter half of 2026.
DoorDash
Wolfe Research maintains an Outperform rating on DoorDash with a $195 price target. The stock has underperformed the broader S&P 500 by 12 percentage points since its February report.
The firm projects first-quarter gross order value and EBITDA metrics will exceed market expectations. Proprietary survey research indicates DoorDash is capturing additional market share within the grocery delivery segment.
Multiple analysts, including the team at BTIG, have reduced price targets in response to expenses associated with a newly implemented driver fuel subsidy initiative. However, all firms have maintained Buy or Outperform ratings.
Shopify
Wolfe Research previously downgraded Shopify when shares traded near $165. The firm now considers the current $112 price level as an attractive entry opportunity.
First-quarter gross merchandise volume, revenue, and operating income are all projected to surpass Street expectations. New product offerings including Shop Campaigns, Audience, and Sidekick, combined with an expanding Google partnership, are identified as primary growth drivers.
Wells Fargo and Deutsche Bank have adjusted price targets downward while maintaining positive ratings. Piper Sandler has reaffirmed its Overweight rating, pointing to a robust revenue growth trajectory.
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