Bernstein Report: Consumer Internet Stocks May Outperform in 2027 Through Three Paths

Written by: Rita

The pessimistic pricing of consumer internet has been overdone. The sector's median stock has declined 11% this year, while the S&P 500 has risen 14% over the same period. Markets have labeled online aggregation platforms as losers in the age of AI agents, but Bernstein identifies three pathways that could drive outperformance by 2027.

In its U.S. Emerging Internet report issued on October 12, 2026, Bernstein noted that market participants have underestimated the friction surrounding AI agents, the barriers to trust, and the pace of evolution in consumer behavior. The current median GAAP P/E ratio for the sector is 22x for 2027 and declines to 18x for 2028, while Bernstein’s coverage averages approximately 20x and 14.5x, respectively.

The median coverage fell 11% this year, while the S&P 500 rose 14% over the same period. The internet sector has become a growth-at-a-reasonable-price (GARP) asset, with a median valuation of 22 times the 2027 GAAP P/E ratio. The expected P/E ratio for 2028 declines to 18 times.

Bernstein’s coverage range implies a valuation of approximately 20 times 2027 GAAP EPS and 14.5 times 2028 GAAP EPS. This figure includes DoorDash and Wayfair, two high-valuation stocks, which inflate the median. Excluding these two, the median valuation in the coverage range is 17.2 times 2027 and 14.3 times 2028.

Earnings forecast revisions are not an issue. The GAAP EPS forecast for the broad internet sector for 2027 has been raised by 4%, and by 8% within Bernstein’s coverage. Valuation compression stems primarily from disputes over terminal value, as AI agents are perceived by the market as a threat to the survival of aggregation platforms.

Uber is the cheapest among peers in scope, trading at 16x in 2027 and 13x in 2028. Bernstein believes that market pessimism regarding autonomous driving is fully priced in, leaving no upside potential for Uber’s U.S. mobility business.

Once market perception of the business model shifts, sector valuations may be rapidly reevaluated. This represents the path with the greatest upside potential, previously accessible only to hyperscale manufacturers and cutting-edge model companies.

Autonomous driving is a key variable for Uber. Autonomous fleets are nearing a tipping point, with Waymo leading the way and expected to scale from thousands to tens of thousands of vehicles over the next few years. Autonomous rides currently account for about 1% of the U.S. ride-hailing market but are growing rapidly. Uber’s deployment of self-driving vehicles in the U.S. could reshape market perceptions of the terminal value of its mobility business.

DoorDash’s AI agent risk is not as extreme as Uber’s. Food delivery platforms face concerns about disintermediation and declining profit margins. Bernstein’s counterargument is that consumer behavior must change first; the duopoly market benefits from membership lock-in and scaled instant logistics, allowing fees to be adjusted; the platform’s value in logistics and real-time inventory remains equally important for AI agents.

DoorDash has launched Ask DoorDash and Text DoorDash, introducing conversational AI commerce to its platform. Uber and Instacart have similar features. Bernstein believes that these product launches position these companies at the forefront of technology and consumer behavior, enhancing the value of their network and marketplace platforms.

Regardless of changes in technological paradigms, revenue acceleration typically works well in this sector. Revenue exceeding expectations, combined with steady growth or moderate slowing, should be sufficient to support the stock price.

Wayfair is a candidate within Bernstein's coverage with potential for revenue improvement. Revenue growth is expected to accelerate to approximately 10% by 2027, driven by category stability, the Rewards program, expansion of offline stores, and improvements in core products. Bernstein believes that even under an optimistic model, Wayfair still has upside potential.

Revenue acceleration is even more effective when combined with the first pathway, such as higher search conversion rates or incremental products. Bernstein expects advancements in AI and machine learning capabilities to enhance the online experience for platform-covered markets.

Large tech companies are entering a capital expenditure cycle, allowing market platforms and application layers to generate relatively stronger free cash flow. However, viewing this path in isolation may not be sufficient, as the market is debating terminal value.

Stronger-than-expected free cash flow combined with improved profit margins provides investors with a reason to hold. DoorDash and eBay are two stocks covered by Bernstein where profit margins will be a key focus in 2027. eBay is a relatively undervalued stock, with market attention on its growth and advertising revenue. Uber also needs to address debates surrounding its capital investment in autonomous driving and its M&A strategy.

Bernstein assigns outperform ratings to DoorDash, Uber, Instacart, and Wayfair, and market perform ratings to all other covered stocks. Target prices are set at $270 for DoorDash, $195 for Uber, $60 for Instacart, and $125 for Wayfair.

The market is overly pessimistic in pricing AI agents, and expectations for consumer internet stocks are building. Whether these three pathways materialize depends on the pace of consumer behavior evolution and the real-world friction of AI agents.

Disclaimer

This article is a compilation and interpretation by Chaoxiang Research of a third-party brokerage research report (Bernstein, October 12, 2026), combined with publicly available market information. The ratings, price targets, earnings forecasts, and related judgments cited herein reflect the views of the brokerage's analysts and represent the position of their respective institution, not the views of Chaoxiang Research, nor do they constitute any investment advice.

The market carries risks; make decisions independently. This article should not be used as a basis for buying or selling any securities.