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 8.5% over the past six months. This drop is a far cry from the S&P 500’s 10% ascent.
Only some companies are subject to these dynamics, however, and a handful of high-quality businesses can deliver earnings growth in any environment. On that note, here are three internet stocks we think can generate sustainable market-beating returns.
Airbnb (ABNB)
Market Cap: $78.44 billion
Founded by Brian Chesky and Joe Gebbia in their San Francisco apartment, Airbnb (NASDAQ:ABNB) is the world’s largest online marketplace for lodging, primarily homestays.
Why Are We Bullish on ABNB?
- Nights and Experiences Booked have increased by an average of 9.4% annually, giving it the potential for margin-accretive growth if it can develop valuable complementary products and features
- Healthy EBITDA margin of 36.4% shows it’s a well-run company with efficient processes, and its operating leverage amplified its profits over the last few years
- ABNB is a free cash flow machine with the flexibility to invest in growth initiatives or return capital to shareholders
Airbnb’s stock price of $129.38 implies a valuation ratio of 16x forward EV/EBITDA. Is now the time to initiate a position? Find out in our full research report, it’s free.
Coupang (CPNG)
Market Cap: $36.83 billion
Founded in 2010 by Harvard Business School student Bom Kim, Coupang (NYSE:CPNG) is an e-commerce giant often referred to as the "Amazon of South Korea".
Why Does CPNG Stand Out?
- Has the opportunity to boost monetization through new features and premium offerings as its active customers have grown by 11.2% annually over the last two years
- Performance over the past three years shows its incremental sales were extremely profitable, as its annual earnings per share growth of 35.4% outpaced its revenue gains
- Free cash flow margin increased by 9.1 percentage points over the last few years, giving the company more capital to invest or return to shareholders
Coupang is trading at $20.33 per share, or 17.5x forward EV/EBITDA. Is now a good time to buy? See for yourself in our full research report, it’s free.
Instacart (CART)
Market Cap: $9.76 billion
Powering more than one billion grocery orders since its founding, Instacart (NASDAQ:CART) is an online grocery shopping and delivery platform that partners with retailers to help customers shop from local stores through its app or website.
Why Will CART Beat the Market?
- Annual revenue growth of 17% over the last three years beat the sector average and underscores the popularity of its platform
- Disciplined cost controls and effective management resulted in a strong two-year EBITDA margin of 27%, and its rise over the last few years was fueled by some leverage on its fixed costs
- Free cash flow margin expanded by 16.8 percentage points over the last few years, providing additional flexibility for investments and share buybacks/dividends
At $37.17 per share, Instacart trades at 7.5x forward EV/EBITDA. Is now the right time to buy? Find out in our full research report, it’s free.
High-Quality Stocks for All Market Conditions
Your portfolio can’t afford to be based on yesterday’s story. The risk in a handful of heavily crowded stocks is rising daily.
The names generating the next wave of massive growth are right here in our Top 9 Market-Beating Stocks. This is a curated list of our High Quality stocks that have generated a market-beating return of 244% over the last five years (as of June 30, 2025).
Stocks that made our list in 2020 include now familiar names such as Nvidia (+1,326% between June 2020 and June 2025) as well as under-the-radar businesses like the once-micro-cap company Tecnoglass (+1,754% five-year return). Find your next big winner with StockStory today.