{"id":129145,"date":"2025-10-18T00:32:10","date_gmt":"2025-10-18T00:32:10","guid":{"rendered":"https:\/\/www.europesays.com\/ie\/129145\/"},"modified":"2025-10-18T00:32:10","modified_gmt":"2025-10-18T00:32:10","slug":"2-internet-stocks-to-keep-an-eye-on-and-1-we-question-2","status":"publish","type":"post","link":"https:\/\/www.europesays.com\/ie\/129145\/","title":{"rendered":"2 Internet Stocks to Keep an Eye On and 1 We Question"},"content":{"rendered":"

\"CHWY<\/p>\n

Whether it be online shopping or social media, secular forces are propelling consumer internet businesses forward. These themes have enabled rapid growth for the industry,
\nwhich has posted a 36.9% gain over the past six months compared to 26% for the S&P 500. <\/p>\n

However, long-term winners that can stand the test of time are rare in this space because competition is fierce with many well-capitalized companies. Taking that into account, here are two internet stocks we think can generate sustainable market-beating returns and one that may face trouble. <\/p>\n

One Consumer Internet Stock to Sell: Chewy (CHWY)<\/p>\n

Market Cap: $15.81 billion<\/p>\n

Founded by Ryan Cohen, who later became known for his involvement in GameStop, Chewy (NYSE: CHWY<\/a>) is an online retailer specializing in pet food, supplies, and healthcare services. <\/p>\n

Why Does CHWY Worry Us?<\/strong><\/p>\n

    \n
  1. Large revenue base makes it harder to increase sales quickly, and its annual revenue growth of 9% over the last three years was below our standards for the consumer internet sector<\/li>\n
  2. Estimated sales growth of 5.9% for the next 12 months implies demand will slow from its three-year trend<\/li>\n
  3. Gross margin of 29.2% reflects its high servicing costs<\/li>\n<\/ol>\n

    Chewy is trading at $37.57 per share, or 20.8x forward EV\/EBITDA. To fully understand why you should be careful with CHWY, check out our full research report (it\u2019s free for active Edge members)<\/a>. <\/p>\n

    Two Consumer Internet Stocks to Watch: Match Group (MTCH)<\/p>\n

    Market Cap: $7.78 billion<\/p>\n

    Originally started as a dial-up service before widespread internet adoption, Match (NASDAQ: MTCH<\/a>) was an early innovator in online dating and today has a portfolio of apps including Tinder, Hinge, Archer, and OkCupid. <\/p>\n

    Why Are We Positive On MTCH?<\/strong><\/p>\n

      \n
    1. Customer spending is rising as the company has focused on monetization over the last two years, leading to 8.9% annual growth in its average revenue per user<\/li>\n
    2. Healthy EBITDA margin of 36.3% shows it\u2019s a well-run company with efficient processes<\/li>\n
    3. MTCH is a free cash flow machine with the flexibility to invest in growth initiatives or return capital to shareholders, and its growing cash flow gives it even more resources to deploy<\/li>\n<\/ol>\n

      At $32.23 per share, Match Group trades at 6.5x forward EV\/EBITDA. Is now a good time to buy? Find out in our full research report, it\u2019s free for active Edge members<\/a>. <\/p>\n

      Netflix (NFLX)<\/p>\n

      Market Cap: $502.9 billion<\/p>\n

      Launched by Reed Hastings as a DVD mail rental company until its famous pivot to streaming in 2007, Netflix (NASDAQ: NFLX<\/a>) is a pioneering streaming content platform.<\/p>\n

      Why Are We Bullish on NFLX?<\/strong><\/p>\n

        \n
      1. Global Streaming Paid Memberships are rising, meaning the company can increase revenue without incurring additional customer acquisition costs if it can cross-sell additional products and features<\/li>\n
      2. Share buybacks catapulted its annual earnings per share growth to 27.8%, which outperformed its revenue gains over the last three years<\/li>\n
      3. Free cash flow margin increased by 19.9 percentage points over the last few years, giving the company more capital to invest or return to shareholders<\/li>\n<\/ol>\n

        Netflix\u2019s stock price of $1,196 implies a valuation ratio of 32.7x forward EV\/EBITDA. Is now the right time to buy? See for yourself in our comprehensive research report, it\u2019s free for active Edge members <\/a>. <\/p>\n

        Stocks We Like Even More<\/p>\n

        Donald Trump\u2019s April 2025 “Liberation Day” tariffs sent markets into a tailspin, but stocks have since rebounded strongly, proving that knee-jerk reactions often create the best buying opportunities. <\/p>\n

        The smart money is already positioning for the next leg up. Don\u2019t miss out on the recovery – check out our Top 6 Stocks for this week<\/a>. This is a curated list of our High Quality stocks that have generated a market-beating return of 183% over the last five years (as of March 31st 2025). <\/p>\n

        Stocks that made our list in 2020 include now familiar names such as Nvidia (+1,545% between March 2020 and March 2025) as well as under-the-radar businesses like the once-micro-cap company Kadant (+351% five-year return). Find your next big winner with StockStory today for free<\/a>. Find your next big winner with StockStory today<\/a>. Find your next big winner with StockStory today<\/a><\/p>\n

        StockStory is growing and hiring equity analyst and marketing roles. Are you a 0 to 1 builder passionate about the markets and AI? See the open roles here.<\/a><\/p>\n

        <\/p>\n","protected":false},"excerpt":{"rendered":"Whether it be online shopping or social media, secular forces are propelling consumer internet businesses forward. These themes…\n","protected":false},"author":2,"featured_media":129146,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[259],"tags":[18,19,285,17,82],"class_list":{"0":"post-129145","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-internet","8":"tag-eire","9":"tag-ie","10":"tag-internet","11":"tag-ireland","12":"tag-technology"},"share_on_mastodon":{"url":"","error":""},"_links":{"self":[{"href":"https:\/\/www.europesays.com\/ie\/wp-json\/wp\/v2\/posts\/129145","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.europesays.com\/ie\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.europesays.com\/ie\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.europesays.com\/ie\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.europesays.com\/ie\/wp-json\/wp\/v2\/comments?post=129145"}],"version-history":[{"count":0,"href":"https:\/\/www.europesays.com\/ie\/wp-json\/wp\/v2\/posts\/129145\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.europesays.com\/ie\/wp-json\/wp\/v2\/media\/129146"}],"wp:attachment":[{"href":"https:\/\/www.europesays.com\/ie\/wp-json\/wp\/v2\/media?parent=129145"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.europesays.com\/ie\/wp-json\/wp\/v2\/categories?post=129145"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.europesays.com\/ie\/wp-json\/wp\/v2\/tags?post=129145"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}