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 30.3% over the past six months. This performance was much worse than the S&P 500’s 2.1% decline.
The elite companies can churn out earnings growth under any circumstance, however, and our mission at StockStory is to help you find them. On that note, here are three resilient internet stocks at the top of our wish list.
Amazon (AMZN)
Market Cap: $2.25 trillion
Founded by Jeff Bezos after quitting his stock-picking job at D.E. Shaw, Amazon (NASDAQ: AMZN) is the world’s largest online retailer and provider of cloud computing services.
Why Are We Positive On AMZN?
- Amazon revolutionized the way consumers shop. This isn’t the only tailwind to its impressive revenue growth, as its highly profitable AWS segment has also driven top-line momentum.
- The company's best-in-class revenue growth coupled with modest operating leverage on its past infrastructure investments has led to elite EPS growth over a multi-year period.
- Though dominant, Amazon's capital-intensive e-commerce business means its profitability is structurally lower than its pure-play tech peers. Can the company pull it up, or are we reaching a ceiling?
At $209.74 per share, Amazon trades at 27.5x forward price-to-earnings. Is now the time to initiate a position? See for yourself in our comprehensive research report, it’s free.
Upwork (UPWK)
Market Cap: $1.43 billion
Formed through the 2013 merger of Elance and oDesk, Upwork (NASDAQ: UPWK) is an online platform where businesses and independent professionals connect to get work done.
Why Does UPWK Stand Out?
- 10.1% annual increases in its average revenue per customer over the last two years show its platform is resonating with power users
- Performance over the past three years shows its incremental sales were extremely profitable, as its annual earnings per share growth of 197% outpaced its revenue gains
- Strong free cash flow margin of 25.2% enables it to reinvest or return capital consistently, and its improved cash conversion implies it’s becoming a less capital-intensive business
Upwork’s stock price of $11 implies a valuation ratio of 5.1x forward EV/EBITDA. Is now the right time to buy? Find out in our full research report, it’s free.
CarGurus (CARG)
Market Cap: $3.17 billion
Bringing transparency to a sometimes opaque process, CarGurus (NASDAQ: CARG) is a digital marketplace where auto dealers can connect with potential customers and where car buyers can browse, purchase, and obtain financing.
Why Do We Like CARG?
- Superior platform functionality and low servicing costs lead to a best-in-class gross margin of 86%
- Earnings per share grew by 26.2% annually over the last three years and trumped its peers
- Free cash flow margin increased by 14.9 percentage points over the last few years, giving the company more capital to invest or return to shareholders
CarGurus is trading at $33.32 per share, or 9.7x forward EV/EBITDA. Is now a good time to buy? See for yourself in our full research report, it’s free.
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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.
