Investment Ratings - The overall industry view is rated as Attractive [4] - Specific company ratings include Equal-Weight (EW) for Compass, Inc. (COMP), DoubleVerify Holdings Inc (DV), Playtika Holding Corp (PLTK), FIGS, and Peloton Interactive, Inc. (PTON) [6][9][10][11][12] - Underweight (UW) rating for Yelp Inc (YELP) [11] Core Insights - Compass, Inc. (COMP) reported lower-than-expected results in 1Q, with revenue and EBITDA 4% and 15% below estimates, but management remains optimistic about future growth [2] - DoubleVerify Holdings Inc (DV) showed encouraging signs of stabilization with 1Q revenue 7% above estimates, driven by strong growth in Activation [6] - Playtika Holding Corp (PLTK) posted solid 1Q results, with revenue and EBITDA exceeding estimates, but faces challenges in its social casino segment [9] - FIGS delivered strong 1Q results, but lowered its FY25 EBITDA margin guidance due to tariff impacts [7][8] - Yelp Inc (YELP) exceeded expectations in 1Q, but faces uncertainty in long-term growth due to macroeconomic pressures [11][12] Company Summaries Compass, Inc. (COMP) - 1Q results were below expectations, but management added 700 new agents and expects positive free cash flow by year-end [2][5] - Revenue guidance for 2Q is 5% and 2% ahead of estimates, indicating potential recovery [5][69] DoubleVerify Holdings Inc (DV) - 1Q revenue growth was driven by a 20% increase in Activation, with profitability exceeding estimates [6] - The company maintains a FY revenue growth guide of 10% despite solid 1Q results [6] Playtika Holding Corp (PLTK) - 1Q revenue and EBITDA were 12% and 6% above estimates, but social casino challenges persist [9] - The company is optimistic about improving margins and increasing direct-to-consumer revenue [9] FIGS, Inc. (FIGS) - Strong 1Q results with revenue and EBITDA above consensus, but lowered FY25 EBITDA margin guidance due to tariffs [7][8] - Management is focused on long-term growth despite near-term challenges [8] Yelp Inc (YELP) - 1Q results exceeded expectations, driven by strength in Services advertising [11] - The company has widened its revenue and EBITDA guidance for FY25, reflecting ongoing macro uncertainty [12]

Investment Rating - The industry view for the Internet sector in North America is rated as Attractive [4][36]. Core Insights - The report highlights potential upside surprises in earnings for several companies, including Bumble Inc., Chewy Inc., Match Group Inc., and Trade Desk Inc. [6][8]. - Conversely, companies like Alphabet Inc., Meta Platforms Inc., and Airbnb Inc. are expected to face downside surprises in their earnings [6][8]. - The report emphasizes the importance of visibility versus valuation in the current market environment, suggesting that investors should consider both factors when making investment decisions [1]. Summary by Company - **Airbnb Inc (ABNB.O)**: Rated Underweight, price at $112.64 [65]. - **Alphabet Inc. (GOOGL.O)**: Rated Overweight, price at $153.33 [65]. - **Amazon.com Inc (AMZN.O)**: Rated Overweight, price at $174.33 [65]. - **Booking Holdings Inc (BKNG.O)**: Rated Equal-weight, price at $4,540.84 [65]. - **DoorDash Inc (DASH.O)**: Rated Overweight, price at $179.39 [65]. - **Expedia Inc. (EXPE.O)**: Rated Equal-weight, price at $152.57 [65]. - **Chewy Inc (CHWY.N)**: Rated Overweight, price at $34.76 [67]. - **Meta Platforms Inc (META.O)**: Rated Overweight, price at $502.31 [65]. - **Uber Technologies Inc (UBER.N)**: Rated Overweight, price at $73.06 [65]. - **Snap Inc. (SNAP.N)**: Rated Equal-weight, price at $7.74 [65]. - **Pinterest Inc (PINS.N)**: Rated Equal-weight, price at $25.45 [65]. - **Roblox Corporation (RBLX.N)**: Rated Overweight, price at $59.09 [67]. - **Yelp Inc (YELP.N)**: Rated Underweight, price at $33.55 [67].

BofA Securities analyst Omar Dessouky double-upgraded the shares of Playtika Holding Corp PLTK on Wednesday from Underperform to Buy and raised the price forecast from $6 to $6.50.The company has the highest profitability in the industry, with 30% EBITDA margins, and is home to some of the largest mobile gaming franchises, the analyst said.Despite being in a mature yet growing industry, PLTK’s 21% FCF yield and 9% dividend yield suggest limited downside.The stock’s recent dislocation is attributed to shareh ...