North American internet stocks weaken during earnings season: Earnings multiples fall, but revenue multiples remain above historical averages
In the week ended 23 October, North American internet stocks as a whole underperformed the broader market, with particularly sharp declines in digital advertising. Morgan Stanley’s valuation comparison shows that earnings multiples have fallen below historical averages, while revenue multiples remain high; stock-based compensation costs also change how valuations look.
Morgan Stanley ·