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By breaking down physical barriers, consumer internet businesses are reshaping how people shop, connect, learn, and play. Luckily for them, the market seems to believe there is a long runway for growth
\nas the industry has recorded a 29.3% gain over the past six months, beating the S&P 500 by 12.8 percentage points. <\/p>\n
Nevertheless, investors should tread carefully as many internet companies pursue winner-take-all strategies, meaning losses can be hefty if their playbooks don\u2019t pan out. With that said, here are three internet stocks boasting durable advantages. <\/p>\n
Amazon (AMZN)<\/p>\n
Market Cap: $2.47 trillion<\/p>\n
Founded by Jeff Bezos after quitting his stock-picking job at D.E. Shaw, Amazon (NASDAQ: AMZN<\/a>) is the world\u2019s largest online retailer and provider of cloud computing services.<\/p>\n Why Do We Like AMZN?<\/p>\n Amazon revolutionized the way consumers shop. At $231.53 per share, Amazon trades at 34.7x forward price-to-earnings. Is now the time to initiate a position? Find out in our full research report, it\u2019s free<\/a>. <\/p>\n Uber (UBER)<\/p>\n Market Cap: $206.1 billion<\/p>\n Notoriously funded with $7.7 billion from the Softbank Vision Fund, Uber (NYSE: UBER<\/a>) operates a platform of on-demand services such as ride-hailing, food delivery, and freight.<\/p>\n Why Will UBER Beat the Market?<\/p>\n Monthly Active Platform Consumers have increased by an average of 14.3% annually, giving it the potential for margin-accretive growth if it can develop valuable complementary products and featuresPerformance over the past three years shows its incremental sales were extremely profitable, as its annual earnings per share growth of 151% outpaced its revenue gainsFree cash flow margin increased by 15.4 percentage points over the last few years, giving the company more capital to invest or return to shareholders<\/p>\n Uber\u2019s stock price of $99.25 implies a valuation ratio of 21.6x forward EV\/EBITDA. Is now the right time to buy? See for yourself in our in-depth research report, it\u2019s free<\/a>. <\/p>\n Duolingo (DUOL)<\/p>\n Market Cap: $13.06 billion<\/p>\n Founded by a Carnegie Mellon computer science professor and his Ph.D. student, Duolingo (NASDAQ: DUOL<\/a>) is a mobile app helping people learn new languages. <\/p>\n Why Is DUOL a Good Business?<\/p>\n Monthly Active Users have grown by 36.5% annually, allowing for more profitable cross-selling opportunities if it can build complementary products and featuresIncremental sales over the last three years have been highly profitable as its earnings per share increased by 311% annually, topping its revenue gainsStrong free cash flow margin of 35% enables it to reinvest or return capital consistently, and its improved cash conversion implies it\u2019s becoming a less capital-intensive business<\/p>\n Duolingo is trading at $285.50 per share, or 40.9x forward EV\/EBITDA. Is now a good time to buy? Find out in our full research report, it\u2019s free<\/a>. <\/p>\n High-Quality Stocks for All Market Conditions<\/p>\n Trump\u2019s April 2025 tariff bombshell triggered a massive market selloff, but stocks have since staged an impressive recovery, leaving those who panic sold on the sidelines. <\/p>\n Take advantage of the rebound by checking out our Top 9 Market-Beating Stocks<\/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-small-cap company Exlservice (+354% 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
\nThis isn\u2019t the only tailwind to its impressive revenue growth, as its highly profitable AWS segment has also driven top-line momentum.The company’s best-in-class revenue growth coupled with modest operating leverage on its past infrastructure investments has led to elite EPS growth over a multi-year period. Though dominant, Amazon’s capital-intensive e-commerce business means its profitability is structurally lower than its pure-play tech peers.
\nCan the company pull it up, or are we reaching a ceiling? <\/p>\n