Valuation of internet stocks under pressure, Jefferies says

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31/05/2022 12:30

** Jefferies lowers PTs on 11 internet stocks and cuts CY23
rev. ests. by 0.6%, citing deteriorating economic conditions
    ** Negative sentiment across both consumers and businesses
is likely to result in more cautious spending patterns, with
headwinds worsening as the economic slowdown deepens, says lead
analyst Brent Thill
    ** Lowers PTs by 15% on Lyft Inc  LYFT , Uber Inc  UBER.N ,
Sonos Inc  SONO.O  and Upwork Inc  UPWK.O ; cuts LYFT and UBER's
FY revenue ests. by 3% and 6%, respectively
    ** Brokerage sees least impact on Bumble Inc  BMBL.O , Match
Group  MTCH.O  and ed-tech stocks
    ** A plethora of factors including higher costs of goods and
commodity prices, China lockdown and supply chain complications
have created a scenario where companies are forced to jack up
prices even as consumer discretionary spending remains weak

 (Reporting by Yuvraj Malik)
 ((yuvraj.malik@thomsonreuters.com))