Wolfe Research Names Meta, Uber, DoorDash, and Shopify as Top Internet Stock Picks

TLDR

• Wolfe Research identifies Meta, Uber, DoorDash, and Shopify as leading large-cap internet stock recommendations
• Mega-cap internet stocks are currently trading significantly below their three-year historical median valuations
• TD Cowen reaffirms a Buy rating on Meta with an $820 price target, pointing to AI-fueled advertising growth as a key factor
• Uber has rolled out fully autonomous robotaxi services in Dubai and reached an agreement to purchase Blacklane
• Analysts covering DoorDash have reduced their price targets because of a new driver fuel subsidy initiative, yet they maintained their Buy ratings

(SeaPRwire) –   Wolfe Research has selected Meta, Uber, DoorDash, and Shopify as its top large-cap internet stock choices. The firm notes that current valuations are appealing following a widespread decline in the sector.

Mega-cap internet stocks are trading three multiples below their three-year historical median valuations. Large-cap stocks in the sector also remain far below their own historical median levels.

Wolfe Research states that fundamentals stay strong despite the valuation compression. The firm is prioritizing stocks that have the highest potential for upward earnings adjustments, margin growth, and ability to withstand macroeconomic challenges.

Meta Platforms

Wolfe Research assigns Meta an Outperform rating with an $800 price target. Since its January earnings announcement, Meta’s shares have lagged the S&P 500 by 12 percentage points.

Meta Platforms, Inc., META

The firm projects first-quarter revenue will exceed analyst estimates by a low-single-digit margin. For the second quarter, Wolfe anticipates management will guide revenue to $61 billion, which is higher than the $60 billion consensus among Wall Street analysts.

AI enhancements via tools such as Lattice, GEM, and Andromeda are set to fuel this growth. The launch of the Muse Spark large language model is viewed as a critical driver.

TD Cowen also reaffirms a Buy rating with an $820 price target. The firm’s first-quarter revenue and operating income estimates are 1% and 6% higher than the consensus, respectively.

Meta’s revenue increased by 22% year-over-year to $201 billion, accompanied by an 82% gross profit margin. The company’s earnings report is scheduled for April 29.

From a regulatory perspective, the European Commission intends to mandate Meta to reverse a policy that limits competing AI chatbots on WhatsApp.

Uber Technologies

Wolfe Research gives Uber an Outperform rating with a $90 price target. Since its February earnings release, Uber’s shares have underperformed the S&P 500 by two percentage points.

First-quarter bookings are projected to surpass estimates by a low-single-digit margin. Second-quarter guidance is expected to be at least in alignment with the consensus.

Uber has recently reached an agreement to acquire Blacklane, a global chauffeur service. Additionally, the company is evaluating a possible controlling stake in Kakao Mobility.

Uber has launched fully autonomous robotaxi services in Dubai via its app. Analysts also identify more aggressive share repurchases as a potential catalyst in the latter half of 2026.

DoorDash

Wolfe Research assigns DoorDash an Outperform rating with a $195 price target. Since February, DoorDash’s shares have lagged the S&P 500 by 12 percentage points.

The firm anticipates first-quarter gross order value and EBITDA will exceed estimates. Internal survey data indicates DoorDash is gaining market share in the grocery delivery segment.

Multiple analysts, including those at BTIG, have lowered their price targets due to the costs associated with a new driver fuel subsidy program. However, all of them kept their Buy or Outperform ratings intact.

Shopify

Wolfe Research had previously downgraded Shopify when its shares were around $165. Now, the firm considers the current $112 price level to be appealing.

First-quarter gross merchandise volume, revenue, and operating income are all projected to exceed Wall Street estimates. New offerings such as Shop Campaigns, Audience, and Sidekick, along with an expanding partnership with Google, are viewed as major growth drivers.

Wells Fargo and Deutsche Bank have reduced their price targets but maintained positive ratings. Piper Sandler reaffirmed an Overweight rating, pointing to a robust revenue growth outlook as the reason.