Bernstein: Consumer Internet Median Down 11%, Three Paths Bet on 2027

That according to Trend Direction Research, a Bernstein research note dated October 12, 2026, states that the median consumer internet index fell 11% this year, while the S&P 500 gained 14% over the same period. The sector's median U.S. GAAP P/E ratio is 22x for 2027, declining to 18x in 2028. Bernstein’s coverage universe averages approximately 20x and 14.5x, while the median excluding DoorDash and Wayfair stands at 17.2x and 14.3x.

Bernstein assesses that the market is overly pricing in pessimism toward AI agents. Three catalysts could drive outperformance in 2027: AI laggards staging comebacks, accelerating revenue growth, and expanding free cash flow. The firm assigns an Outperform rating to DoorDash, Uber, Instacart, and Wayfair, with price targets of $270, $195, $60, and $125, respectively.