{"id":32829,"date":"2025-08-30T11:46:25","date_gmt":"2025-08-30T11:46:25","guid":{"rendered":"https:\/\/www.europesays.com\/ie\/32829\/"},"modified":"2025-08-30T11:46:25","modified_gmt":"2025-08-30T11:46:25","slug":"1-internet-stock-for-long-term-investors-and-2-we-turn-down-2","status":"publish","type":"post","link":"https:\/\/www.europesays.com\/ie\/32829\/","title":{"rendered":"1 Internet Stock for Long-Term Investors and 2 We Turn Down"},"content":{"rendered":"\n

Whether it be online shopping or social media, secular forces are propelling consumer internet businesses forward. Luckily for them, the market seems to believe there is a long runway for growth as the industry has recorded a 12.4% gain over the past six months, beating the S&P 500 by 3.5 percentage points.<\/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. Keeping that in mind, here is one internet stock boasting a durable advantage and two best left ignored.<\/p>\n

Market Cap: $11.81 billion<\/p>\n

Founded by Stanford University students Evan Spiegel, Reggie Brown, and Bobby Murphy, and originally called Picaboo, Snapchat (NYSE: SNAP) is an image centric social media network.<\/p>\n

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

    \n
  1. \n

    Sales trends were unexciting over the last three years as its 7.5% annual growth was below the typical consumer internet company<\/p>\n<\/li>\n

  2. \n

    Focus on expanding its platform has led to weaker growth in its average revenue per user<\/p>\n<\/li>\n

  3. \n

    Issuance of new shares over the last three years caused its earnings per share to fall by 2.3% annually while its revenue grew<\/p>\n<\/li>\n<\/ol>\n

    Snap\u2019s stock price of $7 implies a valuation ratio of 18.8x forward EV\/EBITDA. Dive into our free research report to see why there are better opportunities than SNAP<\/a>.<\/p>\n

    Market Cap: $16.69 billion<\/p>\n

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

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

      \n
    1. \n

      Scale is a double-edged sword because it limits the company\u2019s growth potential compared to its smaller competitors, as reflected in its below-average annual revenue increases of 9.3% for the last three years<\/p>\n<\/li>\n

    2. \n

      Estimated sales growth of 5.1% for the next 12 months implies demand will slow from its three-year trend<\/p>\n<\/li>\n

    3. \n

      Gross margin of 29% reflects its high servicing costs<\/p>\n<\/li>\n<\/ol>\n

      Chewy is trading at $40.53 per share, or 23x forward EV\/EBITDA. To fully understand why you should be careful with CHWY, check out our full research report (it\u2019s free)<\/a>.<\/p>\n

      Market Cap: $79.5 billion<\/p>\n

      Founded by Brian Chesky and Joe Gebbia in their San Francisco apartment, Airbnb (NASDAQ:ABNB) is the world\u2019s largest online marketplace for lodging, primarily homestays.<\/p>\n

      Why Is ABNB a Good Business?<\/strong><\/p>\n

        \n
      1. \n

        Nights and Experiences Booked have grown by 10% annually, allowing for more profitable cross-selling opportunities if it can build complementary products and features<\/p>\n<\/li>\n

      2. \n

        Share buybacks catapulted its annual earnings per share growth to 28.4%, which outperformed its revenue gains over the last three years<\/p>\n<\/li>\n

      3. \n

        ABNB is a free cash flow machine with the flexibility to invest in growth initiatives or return capital to shareholders<\/p>\n<\/li>\n<\/ol>\n

        Story continues <\/p>\n","protected":false},"excerpt":{"rendered":"Whether it be online shopping or social media, secular forces are propelling consumer internet businesses forward. Luckily for…\n","protected":false},"author":2,"featured_media":32830,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[259],"tags":[25755,25756,18,19,285,25752,25753,17,9503,25754,13446,1114,82],"class_list":{"0":"post-32829","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-internet","8":"tag-abnb","9":"tag-consumer-internet","10":"tag-eire","11":"tag-ie","12":"tag-internet","13":"tag-internet-businesses","14":"tag-internet-stock","15":"tag-ireland","16":"tag-market-cap","17":"tag-reggie-brown","18":"tag-snap","19":"tag-social-media","20":"tag-technology"},"share_on_mastodon":{"url":"","error":""},"_links":{"self":[{"href":"https:\/\/www.europesays.com\/ie\/wp-json\/wp\/v2\/posts\/32829","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=32829"}],"version-history":[{"count":0,"href":"https:\/\/www.europesays.com\/ie\/wp-json\/wp\/v2\/posts\/32829\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.europesays.com\/ie\/wp-json\/wp\/v2\/media\/32830"}],"wp:attachment":[{"href":"https:\/\/www.europesays.com\/ie\/wp-json\/wp\/v2\/media?parent=32829"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.europesays.com\/ie\/wp-json\/wp\/v2\/categories?post=32829"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.europesays.com\/ie\/wp-json\/wp\/v2\/tags?post=32829"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}