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Morgan Stanley analysts, led by Brian Nowak, released a note to investors on Wednesday focusing on internet stocks in relation to long-term average multiples.
The analysts said that after recent multiple compression across the space, Amazon (NASDAQ:AMZN) and Meta Platforms Inc (NASDAQ:META) are now 50% below their long-term average EV/EBITDA & EV/Sales multiples, and also at new five-year troughs.
Meanwhile, Google (NASDAQ:GOOGL), which is trading 1.2% higher in Wednesday’s session, was said by the analysts to be 30% below its long-term average and nearing five-year trough EV/EBITDA levels.
Meta Platforms shares, which are down more than 53% in 2022, have climbed 0.7% in today’s session, while Amazon, which is down more than 34% this year, is up 1.5%.
Tech stocks have tumbled this year due to various macroeconomic headwinds such as inflation, interest rate rises, supply chain challenges, and Covid lockdowns in China.
