1 Internet Stock Worth Watching This Week and 2 We’re Avoiding

Consumer Internet Stocks: Current Trends and Top Picks

Digital platforms, from e-commerce to social networks, continue to benefit from broad market trends. However, these businesses remain closely tied to consumer spending, which many investors believe is on the decline. Over the past six months, the sector has dropped by 27.8%, a stark contrast to the S&P 500’s 6.2% gain during the same period.

Even with these challenges, there are still standout companies capable of delivering earnings growth regardless of market headwinds. StockStory was created to help you uncover these resilient performers. With that in mind, let’s examine one internet stock with a strong competitive edge and two others that may be best avoided.

Two Consumer Internet Stocks to Consider Selling

Etsy (ETSY)

Market Capitalization: $5.24 billion

Etsy (NYSE:ETSY), launched by Robert Kalin and his friends, has grown into a major online marketplace specializing in handmade and vintage goods.

Reasons for Our Cautious Outlook on ETSY:

• Etsy’s value proposition appears to be losing traction, as the number of active buyers has declined by an average of 1.4% annually over the past two years.
• Revenue is projected to decrease by 5.7% in the next year, signaling a potential drop in demand.
• Over the last three years, Etsy’s earnings per share have grown by just 1.4% per year, lagging behind its revenue growth and indicating less profitable incremental sales.

Currently trading at $54.65 per share, Etsy’s forward EV/EBITDA ratio stands at 10.1.

Expedia (EXPE)

Market Capitalization: $24.28 billion

Expedia (NASDAQ:EXPE), which began as a Microsoft project, has become a global leader in online travel bookings.

Why We’re Hesitant About EXPE:

• Expedia’s annual revenue growth of 8.1% over the past three years has trailed its industry peers, largely due to its already significant scale.
• The company’s emphasis on platform expansion has come at the cost of monetization, with average revenue per booking declining by 1.5% each year.
• Heavy marketing expenditures suggest that organic demand and user engagement remain weak.

Expedia is priced at $198.30 per share, with a forward EV/EBITDA of 6.3.

One Consumer Internet Stock Worth Buying

Alphabet (GOOGL)

Market Capitalization: $3.76 trillion

Founded by Larry Page and Sergey Brin in a Menlo Park garage, Alphabet (NASDAQ:GOOGL) is the parent company behind Google Search, Google Cloud Platform, and YouTube.

Why We’re Positive on GOOGL:

• Google Search is widely regarded as one of the most successful businesses ever, reflected in Alphabet’s steady revenue growth and impressive operating margins.
• Profitability has improved over time, highlighting the company’s scale and efficiency not only in Search but also across Google Cloud and YouTube.
• Alphabet’s combination of rising revenues, expanding margins, and ongoing share buybacks has fueled robust long-term EPS growth.

Alphabet shares are currently valued at $311.23, translating to a forward price-to-earnings ratio of 27.1. Is this a good entry point?

Investing in High-Quality Stocks for Any Market

Relying on just a handful of stocks can leave your portfolio vulnerable. Now is the time to secure high-quality investments before market conditions shift and opportunities fade.

Don’t wait for the next market downturn. Explore our Top 6 Stocks for this week—a handpicked selection of high-quality companies that have delivered a remarkable 244% return over the past five years (as of June 30, 2025).

Our 2020 picks included well-known names like Nvidia, which soared by 1,326% between June 2020 and June 2025, as well as lesser-known companies such as Comfort Systems, which achieved a 782% five-year return. Start your search for the next breakout stock with StockStory today.