Finance

Morgan Stanley Sees Upside in Five Stocks Ahead of Earnings

Morgan Stanley flags five names with upside ahead of earnings: Spotify, Datadog, SPGI, Warner Music Group, and Starbucks. The note signals catalysts amid a cautious macro backdrop as investors brace for a busy earnings season. Here’s what to watch and how it could shape portfolios.

📅 April 25, 2026
⏱️ 2 min read
Morgan Stanley Sees Upside in Five Stocks Ahead of Earnings

Key Takeaways

  • S&P Global (SPGI) remains a top idea with a price target cut to $556 from $580.
  • Spotify (SPOT) is projected to reach 300 million paid users and is seen as a multi-year growth driver powered by product and AI innovations.
  • Warner Music Group (WMG) is overweight with a price target raised to $38 from $37, and AI concerns are deemed overblown.
  • Datadog (DDOG) shows 30% Q1 growth and rising estimates for Q2 and FY26 after a recent pullback.
  • Starbucks (SBUX) is expected to post better-than-consensus top-line results with a favorable near-term skew.

People Involved

  • No specific individuals mentioned

Entities Involved

  • Spotify Technology S.A. (SPOT) Music streaming company
  • Datadog, Inc. (DDOG) Cloud-scale software data analytics provider
  • S&P Global Inc. (SPGI) Financial information and analytics provider
  • Warner Music Group Corp. (WMG) Music recording company
  • Starbucks Corporation (SBUX) Global coffeehouse chain

MarketMoodz Analysis

For investors, the note signals upside catalysts across information services, software data analytics, IP-rich consumer brands, and global consumer exposure as earnings season kicks off amid macro uncertainty. The mix suggests a tilt toward durable demand themes and potential multiple expansion on visibility.

Historically, Morgan Stanley's cross-sector picks around earnings have guided mid-to-large cap tilts when tech and services roll into results with AI momentum. Watch for how AI-related concerns evolve and whether the stock moves align with sector rotations as more banks publish notes.

Source: Original Article

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