{"id":311441,"date":"2025-10-17T19:03:22","date_gmt":"2025-10-17T19:03:22","guid":{"rendered":"https:\/\/www.europesays.com\/us\/311441\/"},"modified":"2025-10-17T19:03:22","modified_gmt":"2025-10-17T19:03:22","slug":"2-internet-stocks-to-keep-an-eye-on-and-1-we-question","status":"publish","type":"post","link":"https:\/\/www.europesays.com\/us\/311441\/","title":{"rendered":"2 Internet Stocks to Keep an Eye On and 1 We Question"},"content":{"rendered":"\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, which 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

Market Cap: $15.81 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 Worry Us?<\/strong><\/p>\n

    \n
  1. \n

    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<\/p>\n<\/li>\n

  2. \n

    Estimated sales growth of 5.9% for the next 12 months implies demand will slow from its three-year trend<\/p>\n<\/li>\n

  3. \n

    Gross margin of 29.2% reflects its high servicing costs<\/p>\n<\/li>\n<\/ol>\n

    Chewy is trading at $37.57 per share, or 20.8x forward EV\/EBITDA. Read our free research report to see why you should think twice about including CHWY in your portfolio, it\u2019s free for active Edge members<\/a>.<\/p>\n

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

    Originally started as a dial-up service before widespread internet adoption, Match (NASDAQ:MTCH) 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. \n

      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<\/p>\n<\/li>\n

    2. \n

      Healthy EBITDA margin of 36.3% shows it\u2019s a well-run company with efficient processes<\/p>\n<\/li>\n

    3. \n

      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<\/p>\n<\/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

      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) is a pioneering streaming content platform.<\/p>\n

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

        \n
      1. \n

        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<\/p>\n<\/li>\n

      2. \n

        Share buybacks catapulted its annual earnings per share growth to 27.8%, which outperformed its revenue gains over the last three years<\/p>\n<\/li>\n

      3. \n

        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<\/p>\n<\/li>\n<\/ol>\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":3,"featured_media":311442,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[19],"tags":[157198,157197,87004,712,73647,73646,7061,157195,157196,10286,158,67,132,68],"class_list":{"0":"post-311441","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-internet","8":"tag-consumer-internet","9":"tag-edge-members","10":"tag-free-cash-flow","11":"tag-internet","12":"tag-internet-businesses","13":"tag-internet-stocks","14":"tag-market-cap","15":"tag-match-group","16":"tag-mtch","17":"tag-revenue-growth","18":"tag-technology","19":"tag-united-states","20":"tag-unitedstates","21":"tag-us"},"share_on_mastodon":{"url":"https:\/\/pubeurope.com\/@us\/115391064013270327","error":""},"_links":{"self":[{"href":"https:\/\/www.europesays.com\/us\/wp-json\/wp\/v2\/posts\/311441","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.europesays.com\/us\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.europesays.com\/us\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.europesays.com\/us\/wp-json\/wp\/v2\/users\/3"}],"replies":[{"embeddable":true,"href":"https:\/\/www.europesays.com\/us\/wp-json\/wp\/v2\/comments?post=311441"}],"version-history":[{"count":0,"href":"https:\/\/www.europesays.com\/us\/wp-json\/wp\/v2\/posts\/311441\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.europesays.com\/us\/wp-json\/wp\/v2\/media\/311442"}],"wp:attachment":[{"href":"https:\/\/www.europesays.com\/us\/wp-json\/wp\/v2\/media?parent=311441"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.europesays.com\/us\/wp-json\/wp\/v2\/categories?post=311441"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.europesays.com\/us\/wp-json\/wp\/v2\/tags?post=311441"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}