Uber, a ride-sharing company, is expected to post results in early May. Analyst Ken Gawrelski is staying bullish heading into the earnings report, expecting the stock to outperform as consensus converges on their estimates over the next 18 months. The recent Investor Day and medium-term guide have been well-received by the market, leading Gawrelski to lift his price target on Uber to $95 per share from $90, suggesting a 26% upside from the previous close. One underappreciated catalyst leading into the quarterly results is price increases, which help offset driver insurance premiums. Despite being up 22% this year, Gawrelski believes there is still room for Uber’s stock to grow.
In contrast to Uber, Roblox has seen a 16% decline in 2024. However, Gawrelski believes that the stock is worth buying now as its volatility does not align with its fundamentals. With earnings scheduled for early May, the analyst expects Roblox to outperform following in-line to better results on the first-quarter print and guidance. He will be closely watching for updates on the company’s ad platform, which is crucial to the bull case for the stock. Booking trends remain healthy, and with potential surprises to the upside, Roblox could see a turnaround in its performance.
Monday.com, a project-management software company, is expected to report earnings in May. Analyst Michael Berg initiated coverage of the stock with an overweight rating, citing the company’s differentiated work management platform and robust growth levers as key factors for its attractiveness. Berg sees a number of positive catalysts for Monday.com shares, including pricing power, a resilient operating profile, and the ability to withstand macroeconomic challenges. Partners remain enthusiastic about the company’s growth prospects, making Monday.com well-positioned for sustained growth.
Pinterest’s first-quarter print is seen as vital to its bull case according to analysts. The company’s strategic move to outsource monetization to third parties to overcome attribution and scale challenges has been viewed positively. This includes a partnership with Amazon and expected future collaborations with other retail media networks. By making these strategic moves, Pinterest aims to drive growth and enhance its market position in the long term.
Microsoft continues to be seen as the cleanest way to play artificial intelligence (AI) in the tech sector. Analysts note the lack of clear competitive alternatives, the significant early mover advantage, and the company’s track record of avoiding major missteps. This has extended Microsoft’s differentiation in the market, providing a clear runway for continued strength against its peers in the coming years. The path is well-paved for sustained AI-driven uplift for Microsoft.
The tech sector is brimming with opportunities for investors as earnings season unfolds. With companies like Uber, Roblox, Monday.com, Pinterest, and Microsoft showing promising outlooks, there is potential for significant gains in the stock market. Analysts are optimistic about the growth prospects of these tech stocks and believe that they are well-positioned to outperform the market. As investors navigate through the volatility of earnings season, keeping a close eye on these tech giants could lead to substantial returns in the future.