One of the tech stocks that Wells Fargo analysts have highlighted as being set to pop during earnings season is Microsoft. The firm sees Microsoft as the cleanest way to play in the AI space due to lack of clear competitive alternatives and significant early mover advantage. The lack of material missteps has also extended Microsoft’s differentiation, leaving a clear runway for continued strength compared to peers in ’24. The path seems well-paved for sustained, AI-driven uplift for Microsoft.
Uber is another tech stock that analysts are bullish about heading into earnings season. Analyst Ken Gawrelski is staying bullish on Uber as the ride-sharing company prepares to report its earnings in early May. Despite a favorable market reception to the recent Investor Day and medium-term guide, 1Q results are not expected to materially change views on the stock. Gawrelski has lifted his price target on Uber to $95 per share from $90, suggesting a 26% upside from Friday’s close. One underappreciated catalyst heading into the quarterly results is price increases, which could help offset driver insurance premiums and boost the stock.
Pinterest is seen as a key player in the tech stock market by analysts. The firm believes that Pinterest is making the optimal strategic move to outsource monetization to third parties to overcome its attribution and scale challenges. This includes an announced partnership with Amazon and expected future partnerships with other scaled retail media networks. The 1Q print is considered crucial to the bullish case for Pinterest.
Roblox, an online gaming company, has been down by 16% in 2024, but analysts believe that its shares are worth buying now. Scheduled to report earnings in early May, Roblox’s volatility is noted to be out of sync with its fundamentals. Analysts expect outperformance from the stock following in-line to better results on the first-quarter print and guidance. The company’s growth prospects are considered robust, especially with updates on the ad platform.
Shares of the project-management software company Monday.com are considered too attractive to ignore by Wells Fargo analysts. With a differentiated work management platform, Monday.com has robust growth levers to capture market share and drive durable growth. Analyst Michael Berg initiated coverage of the stock with an overweight rating, highlighting the company’s differentiated and expanding platform as well as its robust and balanced operating profile. Despite macro impacts, partners remain enthusiastic about Monday.com’s medium- and long-term trajectory, making it a compelling investment opportunity.
The tech stocks highlighted by Wells Fargo analysts present promising opportunities for investors during earnings season. With favorable market reception, potential catalysts, and strong growth prospects, these stocks could see significant upside in the coming months. It’s essential for investors to pay attention to the upcoming earnings reports and guidance from these companies to make informed investment decisions.