Analysts are intrested in these 5 stocks: ( (LYFT) ), ( (SNAP) ), ( (GOOGL) ), ( (ABNB) ) and ( (PINS) ). Here is a breakdown of their recent ratings and the rationale behind them.
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Lyft’s stock has been given a Neutral rating by analyst Wei Fang, with a target price of $24. The company has shown strong growth in gross bookings, driven by product innovation and partnerships. However, the outlook for core rides growth is decelerating, and the Freenow acquisition in Europe poses challenges due to fierce competition. While falling insurance costs in California could spur growth, the potential for accelerated growth remains uncertain, leading to a balanced risk/reward scenario.
Snap’s stock has also been rated Neutral by Wei Fang, with a $9 price target. Despite the potential for growth re-acceleration and improvements in ad engagement through AI/ML and new ad formats, weak feedback from the ad channel and confusing company messaging keep the rating cautious. Snap’s ad revenue growth has been the slowest among its peers, and the company needs a stronger AI story to regain investor confidence.
Alphabet Class A shares have been rated as Outperform by analyst Gregg Moskowitz, with a $295 price target. The company is well-positioned to benefit from AI advancements in advertising and cloud services. AI Mode and Gemini are helping to stem share losses, and the company’s efforts in AI/ML are driving significant improvements in ad performance. While there are risks from GenAI search competition, Google’s shift to AI-powered solutions is expected to drive growth.
Airbnb has received an Outperform rating from Wei Fang, with a $151 target price. The company’s focus on expanding into the hotel market is seen as a significant growth opportunity. While there are risks associated with the shift from short-term rentals to hotels, the potential for increased market share and revenue growth is compelling. The company’s strong user base and product design work in its favor.
Pinterest has been rated as Outperform by Wei Fang, with a $50 price target. The company is benefiting from AI/ML improvements in ad tech and product offerings, driving increased engagement and ad spend. Pinterest’s efforts to improve international monetization and expand its TAM are showing positive results. The company’s strong leverage to industry trends and improving ad buyer perception make it an attractive investment opportunity.