{"id":220942,"date":"2025-10-17T19:38:07","date_gmt":"2025-10-17T19:38:07","guid":{"rendered":"https:\/\/www.newsbeep.com\/au\/220942\/"},"modified":"2025-10-17T19:38:07","modified_gmt":"2025-10-17T19:38:07","slug":"2-internet-stocks-to-keep-an-eye-on-and-1-we-question","status":"publish","type":"post","link":"https:\/\/www.newsbeep.com\/au\/220942\/","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?<\/p>\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

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

Gross margin of 29.2% reflects its high servicing costs<\/p>\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?<\/p>\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

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

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?<\/p>\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

Share buybacks catapulted its annual earnings per share growth to 27.8%, which outperformed its revenue gains over the last three years<\/p>\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","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":220943,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[18],"tags":[64,63,76557,134504,29186,237,37417,37416,4002,107884,134503,3678,105],"class_list":{"0":"post-220942","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-internet","8":"tag-au","9":"tag-australia","10":"tag-consumer-internet","11":"tag-edge-members","12":"tag-free-cash-flow","13":"tag-internet","14":"tag-internet-businesses","15":"tag-internet-stocks","16":"tag-market-cap","17":"tag-match-group","18":"tag-mtch","19":"tag-revenue-growth","20":"tag-technology"},"_links":{"self":[{"href":"https:\/\/www.newsbeep.com\/au\/wp-json\/wp\/v2\/posts\/220942","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.newsbeep.com\/au\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.newsbeep.com\/au\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/au\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/au\/wp-json\/wp\/v2\/comments?post=220942"}],"version-history":[{"count":0,"href":"https:\/\/www.newsbeep.com\/au\/wp-json\/wp\/v2\/posts\/220942\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/au\/wp-json\/wp\/v2\/media\/220943"}],"wp:attachment":[{"href":"https:\/\/www.newsbeep.com\/au\/wp-json\/wp\/v2\/media?parent=220942"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.newsbeep.com\/au\/wp-json\/wp\/v2\/categories?post=220942"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.newsbeep.com\/au\/wp-json\/wp\/v2\/tags?post=220942"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}