Morgan Stanley Internet: Q3 2026 Small- and Mid-Cap Earnings Preview
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Morgan Stanley previews Q3 2026 results for its small- and mid-cap internet coverage, refreshing models and target prices around key performance indicators: revenue growth, subscriber counts, EBITDA margins, and active-user trends. Despite macro uncertainty, several companies show strong execution in ad tech, e-commerce, and vertical categories. AppLovin remains Overweight on strength in mobile app advertising, with non-gaming expected to drive revenue. Airbnb's growth algorithm has improved, but expectations for double-digit room-night growth and margin expansion are already reflected in the stock; it stays Equal-weight. Expedia, rated Underweight, is making progress on platform integration and cost control yet remains constrained by weaker consumer engagement and reliance on chain hotels and air. Revolve Group faces difficult year-over-year comparisons despite distinctive positioning as an e-commerce retailer, while FIGS's investment case rests on active-buyer growth, higher average order value, and EBITDA margin expansion; Underweight-rated Peloton faces subscriber growth pressure, with hardware launches and cost efficiency key to watch. KPIs hint at possible revenue upside at eBay and Revolve. Target moves include AppLovin to $400 from $450, Zillow to $35 from $60, Unity to $55 from $50, Yelp to $17 from $24, and Liftoff Mobile to $20 from $30.