Seeing trouble ahead for consumer spending, Wolfe Research analyst Deepak Mathivanan on Wednesday turned cautious on both the e-commerce and online travel sectors, cutting his ratings on stocks in both groups.
Mathivanan changed his call on the e-commerce sector to Market Weight from Overweight. His view is that growth “is likely to show high sensitivity to retail sales and consumer spending trends during the macroeconomic slowdown in 2023.” Sales growth for many e-commerce companies benefited from inflationary tailwinds in 2022, he said, arguing that should be a less significant factor next year. Wall Street’s consensus calls on 2023 revenue and earnings are too high for many companies in the sector, he said.
Travel and E-Commerce Face a 2023 Slowdown, Analyst Warns
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