Internet Large Cap Q2 Preview: Trading Calls + WRe vs. Consensus + Setups + Key Themes

研报英文原文证据摘录

Internet Large Cap Q2 Preview: Trading Calls + WRe vs. Consensus + Setups + Key Themes

Global Internet

ECommerce - Market Overweight

Mobility & Delivery - Market Overweight

Online Advertising - Market Overweight

Internet Large Cap Q2 Preview: Trading Calls + WRe vs. July 8, 2026

Consensus + Setups + Key Themes

The Wolfe Byte

Ahead of the Q2 EPS season, we share our view on: i) setups for LC Internet stocks, ii) current, top of mind themes,

iii) trading opportunities, and iv) WRe vs. consensus. In the N/MT, we are most positive on AMZN, UBER, DASH,

& SHOP, NT tactically cautious on EBAY.

Valuation multiples have remained largely compressed for most of the large caps with pockets of re-rating (CART,

DASH, SHOP) since their respective Q1 prints. On EV/EBITDA and P/E basis, mega caps are trading 1.5-turns/3-

turns below their 3-year historical medians, and the large caps are well below their 3-yr median levels. Volatility

remains elevated. AI-based innovation is rapid with GPT 5.6 (coming soon), Fable and Sonnet 5, and Muse Image models

released in very recent past. While there has been some AI-related semis sell-off (in part due to CapEx debate and some

due to Samsung), we maintain our view that CapEx levels for AMZN, GOOGL, and META will likely remain elevated

next year and in 2028 with potentially more debt raises ahead. We are well above the Street and estimate ~$300B in

CapEx for AMZN and GOOGL and $200B for META next year.

Against this valuation backdrop + AI and CapEx debate, we look at NT opportunities where we see the highest

likelihood of upward estimates revision, with potential for topline growth acceleration and/or meaningful margin

expansion, and relatively greater macro resiliency than the rest of our coverage universe.