Consumer internet businesses are redefining how people engage with the world by giving them instant connectivity and convenience. But it’s not all sunshine and rainbows as consumer purchasing power can make or break demand. Unfortunately, the market seems to believe stormy skies are ahead as the industry has shed 4.4% over the past six months. This drop is a stark contrast from the S&P 500’s 8.7% gain.
The elite companies can churn out earnings growth under any circumstance, however, and our mission at StockStory is to help you find them. With that said, here are two resilient internet stocks at the top of our wish list and one we’re passing on.
One Consumer Internet Stock to Sell:
Etsy (ETSY)
Market Cap: $8.14 billion
Founded by a struggling amateur furniture maker Robert Kalin and his two friends, Etsy (NYSE: ETSY) is one of the world’s largest online marketplaces, focusing on handmade or vintage items.
Why Are We Hesitant About ETSY?
- Struggled with new customer acquisition as its active buyers averaged 1.7% declines
- Estimated sales decline of 2.1% for the next 12 months implies a challenging demand environment
- Earnings per share were flat over the last three years while its revenue grew, showing its incremental sales were less profitable
Etsy is trading at $85.10 per share, or 14.4x forward EV/EBITDA. Read our free research report to see why you should think twice about including ETSY in your portfolio.
Two Consumer Internet Stocks to Watch:
Lyft (LYFT)
Market Cap: $6.16 billion
Founded by Logan Green and John Zimmer as a long-distance intercity carpooling company Zimride, Lyft (NASDAQ: LYFT) operates a ridesharing network in the US and Canada.
Why Do We Love LYFT?
- Active Riders are rising, meaning the company can increase revenue without incurring additional customer acquisition costs if it can cross-sell additional products and features
- Incremental sales significantly boosted profitability as its annual earnings per share growth of 69.1% over the last three years outstripped its revenue performance
- Free cash flow margin increased by 24.1 percentage points over the last few years, giving the company more capital to invest or return to shareholders
Lyft’s stock price of $16.18 implies a valuation ratio of 7.8x forward EV/EBITDA. Is now a good time to buy? Find out in our full research report, it’s free.
Coursera (COUR)
Market Cap: $1.59 billion
Founded by two Stanford University computer science professors, Coursera (NYSE: COUR) is an online learning platform that offers courses, specializations, and degrees from top universities and organizations around the world.
Why Are We Positive on COUR?
- Exciting sales outlook for the upcoming 12 months calls for 82.6% growth, an acceleration from its three-year trend
- EBITDA profits increased over the last few years as the company gained some leverage on its fixed costs and became more efficient
- Incremental sales significantly boosted profitability as its annual earnings per share growth of 47.3% over the last three years outstripped its revenue performance
At $5.59 per share, Coursera trades at 0.9x forward EV/EBITDA. Is now the right time to buy? See for yourself in our comprehensive research report, it’s free.
Stocks We Like Even More
ONE MORE THING: Top 5 Growth Stocks. The biggest stock winners almost always had one thing in common before they ran. Revenue growing like crazy. Meta. CrowdStrike. Broadcom. Our AI flagged all three. They returned 315%, 314%, and 455%, respectively.
Find out which 5 stocks it’s flagging this month — FREE. Get Our Top 5 Growth Stocks for Free HERE.
Stocks that made our list in 2020 include now familiar names such as Nvidia (+1,460% between June 2020 and June 2025) as well as under-the-radar businesses like the once-micro-cap company Kadant (+214% between June 2020 and June 2025). Find your next big winner with StockStory today.
