Market context
Large-cap internet names are trading at notably lower multiples compared with their recent history — mega caps run roughly three turns beneath their three-year medians, and the broader large-cap group sits well below its own three-year median. That compression has persisted since fourth-quarter earnings, even as fundamentals entering the current earnings season look broadly healthy and some macro anxieties have eased.
Wolfe Research framework
Wolfe Research has distilled a list of four large-cap internet stocks that, in its view, offer the strongest mix of catalysts for upward estimate revisions, the potential for top-line acceleration, scope for meaningful margin expansion and relative resilience to macro swings. A common thread across the names the firm highlights is the potential for AI-enabled product improvements and re-grossing opportunities to lift results.
Meta Platforms (META)
Wolfe Research maintains an Outperform rating on Meta Platforms with a price target of $800. Since Meta reported results on January 28, the shares have underperformed the S&P 500 by 12 points. The broker expects first-quarter revenue to beat consensus by low-single digits, citing advertising checks, typical seasonality and historical patterns. For the second quarter, Wolfe expects management guidance above Street consensus at $61 billion versus a $60 billion consensus, driven by incremental improvements in recommendation and ranking tied to Lattice, GEM and Andromeda. The firm also sees the Muse Spark launch as a clearing event for the company.
Wolfe points to valuation at 17 times 2027 earnings as particularly attractive. The firm notes the company has drawn Buy or Overweight reiterations from other analysts on increasing advertising momentum, and it also highlights a regulatory development: Meta is facing a potential European Commission order to reverse a policy related to rival AI chatbots on WhatsApp.
Uber Technologies (UBER)
Wolfe Research rates Uber Outperform with a $90 price target. Since the company reported on February 4, UBER shares have underperformed the S&P 500 by two points. Wolfe anticipates first-quarter bookings to top Street estimates by low-single digits based on its checks and intra-quarter trends. The broker expects second-quarter bookings and earnings guidance to come in at least in line with consensus, reflecting sticky demand trends and pricing uplift.
Wolfe highlights potential catalysts including a more aggressive buyback posture and the planned roll-out of new autonomous vehicle markets in the second half of 2026. The firm views valuation as appealing at 11 times 2027 free cash flow and 17 times 2027 earnings. Recent company developments noted by Wolfe include the agreement to acquire global chauffeur service Blacklane and a reported review of a potential acquisition of a controlling stake in Kakao Mobility. Additionally, the company has launched fully driverless robotaxi operations in Dubai accessible through its app.
DoorDash (DASH)
For DoorDash, Wolfe Research keeps an Outperform rating with a $195 price target. Since the February 18 earnings report, DASH shares have lagged the S&P 500 by 12 points. Wolfe expects first-quarter gross order value and EBITDA to beat Street expectations by low-single digits. Demand trends appear sticky with pricing uplift, and proprietary survey data from Wolfe suggests DoorDash is gaining share in grocery delivery. The firm views valuation at 14 times 2027 EBITDA as highly attractive.
Wolfe also notes that several analysts, including Wolfe itself and BTIG, have trimmed price targets on DoorDash in light of costs tied to a new fuel subsidy program for drivers, while continuing to carry Buy or Outperform ratings.
Shopify (SHOP)
Wolfe Research, which downgraded Shopify near year-end when the stock was around $165 per share, sees the current $112 level as attractive. Since Shopify's February 11 earnings report, the shares have underperformed the S&P 500 by three points. Wolfe expects first-quarter gross merchandise volume, revenue and operating income to top Street estimates based on healthy intra-quarter demand trends.
The firm points to product and partnership catalysts including scaling newer offerings such as Shop Campaigns, Audience and Sidekick, and an expanding partnership with Google. Wolfe also references recent analyst activity: Wells Fargo and Deutsche Bank have lowered price targets while maintaining positive ratings, and Piper Sandler has reiterated an Overweight rating on the company, citing a strong revenue growth outlook.
Valuation and implications
Across the four names, Wolfe's analysis emphasizes that multiples have come down materially and current valuations leave room for upside should the firm's baseline expectations for low-single-digit beats and modest guidance outperformance materialize. The identified drivers mix AI-enabled product improvement, monetization opportunities and operational leverage that could support margin expansion.
Takeaway
Wolfe Research singles out Meta Platforms, Uber Technologies, DoorDash and Shopify as large-cap internet stocks with near-term potential, based on a set of observable catalysts and attractive forward valuation metrics. The firm anticipates small beats for first-quarter results across several names, constructive second-quarter guidance for some, and notable product and strategic developments that could help re-accelerate growth or re-gross revenue streams. Investors should weigh these near-term opportunities against the sector-wide valuation compression that has occurred since the fourth-quarter reporting period.
Note: This article reflects Wolfe Research's published views and the company-level details reported above. It does not add any new financial forecasts beyond those cited by Wolfe Research.