By breaking down physical barriers, consumer internet businesses are reshaping how people shop, connect, learn, and play. 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 17.8% over the past six months. This drawdown is a far cry from the S&P 500’s 8.4% ascent.
Despite the lackluster result, a few diamonds in the rough can produce earnings growth no matter what, and we started StockStory to help you find them. Keeping that in mind, here are two internet stocks we think can generate sustainable market-beating returns and one best left ignored.
One Consumer Internet Stock to Sell:
Match Group (MTCH)
Market Cap: $7.18 billion
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.
Why Are We Wary of MTCH?
- Intense competition is diverting traffic from its platform as its payers fell by 4.7% annually
- Demand is forecasted to shrink as its estimated sales for the next 12 months are flat
- Earnings per share lagged its peers over the last three years as they only grew by 4.1% annually
At $30.80 per share, Match Group trades at 8.2x forward EV/EBITDA. To fully understand why you should be careful with MTCH, check out our full research report (it’s free).
Two Consumer Internet Stocks to Watch:
Electronic Arts (EA)
Market Cap: $49.53 billion
Best known for its Madden NFL and FIFA sports franchises, Electronic Arts (NASDAQ:EA) is one of the world’s largest video game publishers.
Why Should EA Be on Your Watchlist?
- Marketing spend is minimal, showing it doesn’t need advertisements to acquire new users because of its well-known brand
- Disciplined cost controls and effective management resulted in a strong two-year EBITDA margin of 36.6%, and its efficiency improved over the last few years as its margin expanded
- Impressive free cash flow profitability enables the company to fund new investments or reward investors with share buybacks/dividends, and its rising cash conversion increases its margin of safety
Electronic Arts’s stock price of $197.99 implies a valuation ratio of 16.1x forward EV/EBITDA. Is now the time to initiate a position? Find out in our full research report, it’s free.
Remitly (RELY)
Market Cap: $2.68 billion
With Amazon founder Jeff Bezos as an early investor, Remitly (NASDAQ:RELY) is an online platform that enables consumers to safely and quickly send money globally.
Why Are We Bullish on RELY?
- Has the opportunity to boost monetization through new features and premium offerings as its active customers have grown by 31.9% annually over the last two years
- Incremental sales significantly boosted profitability as its annual earnings per share growth of 74.6% over the last three years outstripped its revenue performance
- Free cash flow margin jumped by 24.7 percentage points over the last few years, giving the company more resources to pursue growth initiatives, repurchase shares, or pay dividends
Remitly is trading at $12.81 per share, or 8.5x forward EV/EBITDA. Is now a good time to buy? See for yourself in our full research report, it’s free.
Stocks We Like Even More
If your portfolio success hinges on just 4 stocks, your wealth is built on fragile ground. You have a small window to secure high-quality assets before the market widens and these prices disappear.
Don’t wait for the next volatility shock. Check out 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-small-cap company Exlservice (+354% five-year return). Find your next big winner with StockStory today.