The global digital market is growing at a breakneck pace and some technology companies have significant growth potential ahead of them, according to experts. Cantor Fitzgerald recently published an analysis recommending investment in three major players.

Which companies are they?

While recognizing the potential macroeconomic risk and volatility in the markets, analysts predict growth for these firms, fueled by advances in artificial intelligence, market share gains and improvements in operational efficiency

Meta Platforms: the social networking and artificial intelligence giant

Meta

META

$559.10 $21.15 +3.93%

Capital Structure

Market Cap

1.4T

Enterpr. Val.

1.4T

Valuation

P/E

27.5

P/S

9.1

Open $537.06

Day range $533.90 - $544.20

52 week range $279.40 - $544.23

Meta Platforms $META+3.9%, known for its dominance in the social media market through Facebook, Instagram and WhatsApp, is focused on expanding its influence in the artificial intelligence and metaverse. Cantor Fitzgerald gave Meta an "Overweight" rating with a target price of $660 per share. According to analysts, Meta has plenty of room to grow and the opportunity to increase its revenue by an average of more than 15% annually over the next two to three years.

A key factor in the company's growth is the use of artificial intelligence (AI), although there is some skepticism among investors about the return on investment in AI technology. Cantor, however, believes that Meta's current stock value already incorporates a degree of this skepticism and anticipation of a potential economic recession. Therefore, he sees room for further positive revisions to the growth outlook, especially if the company can demonstrate the efficacy of its AI and Meta investments.

MercadoLibre: Latin American leader in eCommerce and Fintech

MercadoLibre, Inc.

MELI

$2,109.40 $6.76 +0.32%

Capital Structure

Market Cap

106.6B

Enterpr. Val.

110.1B

Valuation

P/E

76.2

P/S

6.1

Open $2,078.76

Day range $2,074.22 - $2,124.52

52 week range $1,141.04 - $2,143.96

MercadoLibre $MELI+0.3%, the Latin American eCommerce and financial technology (fintech) giant, is another candidate for significant growth. Cantor assigned an "Overweight" rating to MercadoLibre and set a target price of $2,530 per share. This estimate is backed by expectations for gross merchandise volume (GMV) growth of 17% per year and total payment volume (TPV) growth of 20% per year.

Analysts also expect MercadoLibre to be able to increase its operating margins by more than 140 basis points (bps) annually between fiscal years 2024 and 2026. With these positive outlooks, Cantor said investors have ample reason to expect the company's stock value to rise. A major advantage for MercadoLibre is its strong position in the Latin American market, which has great growth potential in e-commerce and digital payments.

DoorDash: US leader in food delivery

DoorDash, Inc.

DASH

$137.29 $4.81 +3.63%

Capital Structure

Market Cap

54.5B

Enterpr. Val.

51.6B

Valuation

P/E

-131.2

P/S

5.7

Open $131.22

Day range $130.34 - $134.05

52 week range $69.90 - $143.34

The third company that Cantor highlights is DoorDash $DASH+3.6% - a leader in food and grocery delivery in the US. The company received an "Overweight" rating with a target price of $160 per share. DoorDash is expected to continue to grow gross order value (GOV) due to an increase in users, higher order frequency and new product introductions.

Although there may be concerns about an economic slowdown, Cantor points to DoorDash's strong customer base that could help the company weather a potential recession. The company is focused on expanding its service portfolio, which could increase its profit margins in the long run.

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