Whether it be online shopping or social media, secular forces are propelling consumer internet businesses forward. 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 31.5% over the past six months. This drawdown is a stark contrast from the S&P 500’s 1.1% 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 internet stocks we think can generate sustainable market-beating returns and one we’re passing on.
One Consumer Internet Stock to Sell:
Fiverr (FVRR)
Market Cap: $378.9 million
Based in Tel Aviv, Fiverr (NYSE: FVRR) operates a fixed price global freelance marketplace for digital services.
Why Are We Hesitant About FVRR?
- Intense competition is diverting traffic from its platform as its active buyers fell by 11% annually
- Projected sales decline of 6.4% for the next 12 months points to a tough demand environment ahead
- Highly competitive market means it’s on the never-ending treadmill of sales and marketing spend
Fiverr is trading at $10.56 per share, or 1.2x forward price-to-gross profit. To fully understand why you should be careful with FVRR, check out our full research report (it’s free).
Two Consumer Internet Stocks to Buy:
Roku (ROKU)
Market Cap: $14.1 billion
With a name meaning six in Japanese because it was the founder's sixth company that he started, Roku (NASDAQ: ROKU) makes hardware players that offer access to various online streaming TV services.
Why Will ROKU Beat the Market?
- Has the opportunity to boost monetization through new features and premium offerings as its total hours streamed have grown by 56.8% annually over the last two years
- Free cash flow margin grew by 14.9 percentage points over the last few years, giving the company more chips to play with
At $95.23 per share, Roku trades at 19.9x forward EV/EBITDA. Is now the right time to buy? See for yourself in our in-depth research report, it’s free.
Robinhood (HOOD)
Market Cap: $67.43 billion
With a mission to democratize finance, Robinhood (NASDAQ: HOOD) is an online consumer finance platform known for its commission-free stock and crypto trading.
Why Should You Buy HOOD?
- 198% annual increases in its average revenue per user over the last two years show its platform is resonating with power users
- Incremental sales significantly boosted profitability as its annual earnings per share growth of 63.9% over the last three years outstripped its revenue performance
- Free cash flow margin jumped by 102.3 percentage points over the last few years, giving the company more resources to pursue growth initiatives, repurchase shares, or pay dividends
Robinhood’s stock price of $74.67 implies a valuation ratio of 22.9x forward EV/EBITDA. Is now a good time to buy? Find out in our full research report, it’s free.
Stocks We Like Even More
WHILE YOU’RE HERE: Top 9 Market-Beating Stocks. The best stocks don't just beat the market once. They do it again. And again. Robust revenue growth, rising free cash flow, returns on capital that leave their competition in the dust. The market has already rewarded these businesses.
But our AI platform says the party isn't over. Find out which 9 stocks made the cut this week — FREE. Get Our Top 9 Market-Beating Stocks for Free HERE.
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 Kadant (+351% five-year return). Find your next big winner with StockStory today.
