Stock Groups

Top Wall Street analysts like stocks like Uber and Shopify

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Protective masks were worn by people in front the Uber Technologies Inc. headquarters, San Francisco, California on Wednesday, 9 June 2021.

David Paul Morris | Bloomberg | Getty Images

For short-term investors, the latest market volatility was nothing but stomach-churning.

The sell-off caused by tech growth and tech names has led to a misfortune that has left all three major averages well below their January levels.

Analysts do long-term projections for the companies they cover. They can see beyond stock price fluctuations and look at stocks in a longer-term perspective. TipRanks tracks top-performing stock pickers and has revealed that Wall Street’s most respected analysts have identified the names they prefer for long-term investments.

Shopify  

The E-commerce market is experiencing a cooling trend, with some companies seeing their shares drop. Shopify (SHOPThe value of ) has fallen about half a percent since November’s peak. Many analysts believe that the discount share price is attractive to merchants on the point-of-sale platform. (See Shopify Stock ChartsTipRanks 

Darren Aftahi from Roth Capital Partners is one of the bullish voices. He projects 30% growth year-over-year in gross merchandise value to SHOP’s upcoming earnings. He called Shopify a pioneer in ecommerce and noted the stabilizing trends in consumer spending as well as the solid position Shopify has within the space.  

Aftahi assigned the stock as a Buy and gave a target price of $1,400.  

Additionally, the analyst spoke about Shopify’s strategic partnership to Chinese e-commerce company JD.com. This deal allows SHOP merchants “sell directly Chinese customers via JD Marketplace” and will likely open up shopify’s doors to JD’s 500M+ customers in China to a “new TAM”.  

Aftahi believes that the transaction will increase Shopify’s bottom line for the second half 2022 by streamlining China merchant barriers from 12 to 3 to 4-weeks.  

TipRanks maintains Aftahi’s No. 1 financial aggregator. Out of over 7,000 analysts it has in its database, 222. His success rate is 39% and his rating average return him 40.7%  

Meta Platforms  

Meta PlatformsFBThe last months of 2021 have been turbulent. There were many negative headlines, and some insight from the whistleblower Frances Haugen testimoniesIn front of legislators Meta’sSome investors are scared by algorithmic investments  

Brian White, of Monness, predicts that Meta will have a turbulent year. The company is scheduled to report quarterly earnings on February 2. This technology conglomerate should also “continue leveraging the digital ad trends, take part in accelerated digitization, and innovate in the metaverse.” (See Meta Platforms Website TrafficTipRanks 

White gave the stock a Buy rating and set a $460 price target.  

Although ad growth has slowed, the analyst said that spending was still at a respectable pace. He doesn’t think that FB will be out of trouble due to the ongoing negative media coverage. Its earnings call in the future will probably include topics such as Apple privacy policies, Instagram Reels user engagement, and other e-commerce trends.  

Despite these concerns, White still sees FB as a attractive valuation and is bullish for its earnings call.  

White is No. 141. Stock picks by Mr. Smith have proven to be correct 66% of time, and have averaged 31.1%.  

Uber  

Investors who were affected by the pandemic experienced a roller coaster ride of emotions. Uber Technologies (UBERHowever, analysts are now reaffirming their bullish views on the stock. Although the initial panic caused by the omicron variant of the virus led to more restrictions and mobility problems, it appears now that these levels have returned to pre-pandemic levels.  

Scott Devitt from Stifel argued in favor of this scenario, saying that the worldwide recovery of mobility looks healthy and the company expected to perform close to the top of its guidance range. Uber expects to announce earnings February 9, after the market closes, and host an investor conference on the next day. (See Uber Hedge Fund ActivityTipRanks 

Devitt gave the stock a Buy rating and set a $50 price target.  

He also wrote that Uber had recently restructured its loyalty program and introduced the Uber One membership. It will allow users to access benefits across all of the company’s businesses including delivery and grocery. Devitt believes this move will increase engagement among Uber’s loyal customers and boost the value proposition.  

Uber is also busy merging its logistics capabilities with Transplace, which was recently acquired by the software company Transplace.  

Devitt was rated No. 335. Stock picks by the analyst have been a success 52% of times and return him on average 23.9%.  

HubSpot  

The Covid-19 Pandemic, up to the end of this quarter, had been a success. HubSpot (HUBS). Stock fell precipitously as soon as the news about the Omicron version hit the headlines. Analysts still appreciate the company’s direction in sales and marketing. (See HubSpot Insider Trading ActivityTipRanks 

Jefferies shareholder Samad Samana is one of the participants, declaring that Jefferies “remains a favorite mid-cap name.” He pointed out that there are promising forecasts for 2021 through the first week of 2022.  

Samana gave the stock a Buy rating and set a $800 price target for each share.

HubSpot has a long-term and solid outlook on growth in 2022 according to the analyst. This is due partly to HubSpot’s enterprise traction and higher attach rate. It has witnessed larger companies adopt its software, and then continue to use it even as they scale up. It is competing with Salesforce and other established companies in this area.  

Samana explained that many large customers, who had previously migrated to HUBS, are interested in moving back to HUBS because of the substantial progress made with the product suite. Also, the capability to manage larger and more complicated customers.  

TipRanks ranks Samana as No. Out of more than 7,000 analysts, 386 are TipRanks. The stock picks of his have performed correctly 53% out of over 7,000 analysts and averaged 29.9% returns.  

ServiceNow  

Another cloud-based company, as well as a work flow-solutions provider, was impacted by the pandemic and its digital transformation sent its value soaring. As its competitors, ServiceNow (NOW() suffered a significant drop from its highs in November, but managed to get back on track. top-notch earnings for the fourth quarter. According to Brian Schwartz of Oppenheimer & Co., the stock has a possible recovery in its cards.  

ServiceNow’s continued growth is being driven by IT service demand. The analyst was positive about NOW’s earnings and stated that it should dispel concerns that IT services demand in enterprises is declining. (See ServiceNow Earnings DataTipRanks 

Schwartz assigned the stock as a Buy and set $660 for the price target.  

When companies give guidance that is higher than Wall Street consensus estimates, investors should be alert. ServiceNow made this decision despite the fact that it has been facing the effects of the slowing macroeconomic environment for the last two years.  

Schwartz also noted his optimism despite swings of share prices, writing that “NOW provides a nice balance between strong top-line and margin expansion. Such that even if multiples for valuations were to shrink further across this space, ServiceNow’s unique financials profil and embeddedness across enterprise IT stacks positions ServiceNow to outperform all its growth peers.” 

He continued by saying that ServiceNow was “a distinctive proposition” among large-cap stock software companies.  

Schwartz is No.1 among the more than 7,000 professional analyst in TipRanks’ database. 14. His success rate in rating stocks has been 72%. He also returns an average return of 51.4%.

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