3 Consumer Internet Stocks: 1 to Sell, 2 to Watch

These themes have enabled rapid growth for the industry, which has posted a 19.2% gain over the past six months.

Consumer internet businesses are quickly redefining how people engage with the world by offering instant connectivity and convenience. These themes have fueled impressive growth, particularly in the last six months, with the industry rising 19.2%—a good place to be while the S&P 500 stagnated.

Although these companies are delivering results, only those with the widest moats will survive as emerging, red-hot players regularly arrive to claim their slice of the pie. On that note, here are two resilient internet stocks at the top of our wish list and one we’re swiping left on.

One Consumer Internet Stock to Sell:

Snap (NYSE:SNAP)

Founded by Stanford University students Evan Spiegel, Reggie Brown, and Bobby Murphy, and originally called Picaboo, Snap (NYSE:SNAP) is an image-centric social media network launched in 2011.

At $9.49 per share, Snap trades at 21.5x forward EV-to-EBITDA, a valuation that reflects the premium assigned to its high growth. If you’re considering adding Snap to your portfolio, see our FREE research report for a complete analysis.

Two Consumer Internet Stocks to Watch:

Pinterest (NYSE:PINS)

Conceived with the goal of virtually replacing bulky paper catalogues, Pinterest (NYSE:PINS) is an online image and social discovery platform founded in 2010 by Ben Silbermann, Paul Sciarra, and Donna Harris.

Pinterest is trading at $33.65 per share, or 18.5x forward EV-to-EBITDA. Is now the right time to buy? Find out in our full research report, it’s free.

Coinbase (NASDAQ:COIN)

Broadly viewed as the face of crypto, Coinbase (NASDAQ:COIN) is a blockchain infrastructure company founded in 2012 by Brian Armstrong and Fred Ehrsam to update the financial system with its trading, staking, stablecoin, and other payment solutions.

Coinbase’s stock price of $198.15 implies a valuation ratio of 17.2x forward EV-to-EBITDA. Is now a good time to buy? See for yourself in our comprehensive research report, it’s free.

Stocks We Like Even More

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Get started by checking out our Top 5 Strong Momentum Stocks for this week. This is a curated list of our High Quality stocks that have generated a market-beating return of 175% over the last five years.

Stocks that made our list in 2019 include now familiar names such as Nvidia (NASDAQ:NVDA) (+2,183% between December 2019 and December 2024) as well as under-the-radar businesses like Comfort Systems (NYSE:CVT) (+751% five-year return). Find your next big winner with StockStory today for free.