One thing that remains constant in this slow-motion recovery is the fact that outsized growth still exists in one place — the internet.
Whether it’s websites, e-commerce or straight up social media platforms, people are continuing to join in the internet revolution. Here we examine our top seven internet stocks with upside you’ll “like.”
There are some big names here as well as some companies that are trailblazers that you haven’t heard too much about yet. But all have one similar quality — they have serious momentum here.
The smaller firms are also excellent potential takeover plays by bigger fish in the sector, as they expand their growing empires. What is an up-and-comer today could be a satellite in a tech blue chip tomorrow.
And for some of the bigger firms, the field is rich with opportunities as more and more price conscious consumers look to the internet for shopping, talking and sharing.
If you’re not in this sector, then now is the time to get on this train.
Internet Stocks to Buy: Amazon (AMZN)
Amazon.com, Inc. (NASDAQ:AMZN) is a major e-commerce force. It’s a major cloud computing force. And it’s a major force in groceries, retail, voice recognition software and the list goes on.
There is one chart that really explains why AMZN is such a juggernaut. Basically it shows that AMZN sells six times more than other retailers (that’s Wal-Mart Stores, Inc. (NYSE:WMT), Target Corporation (NYSE:TGT) and Costco Wholesale Corporation (NASDAQ:COST) combined.
It has eclipsed WMT as the world’s largest retailer by market cap, and it’s just getting started.
Where Walmart is locked into retail, Amazon is widely diversified across a number of industries. And in most of them, it’s an industry leader.
For example, there is real talk now that AMZN’s breakthrough delivery methods could be threatening major logistics companies like FedEx Corporation (NYSE:FDX). Its Prime service 2-day delivery and same-day grocery delivery pilot are changing the face of logistics.
Internet Stocks to Buy: MeetMe (MEET)
MeetMe Inc (NASDAQ:MEET) is a mobile-based “social discovery” platform, built to allow people from across globe to meet each other online.
So, instead of having a stable of friends that follow you, MEET is designed so you can grow your friends across borders.
It’s available on all major mobile platforms and is available in English, Spanish, Portuguese, French, Italian, German, Chinese (Traditional and Simplified), Russian, Japanese, Dutch, Turkish and Korean.
And if you think this is already being done by the various social media outfits out there already, you would be mistaken. The numbers prove it.
Revenue for the year is projected to be up 16% to 22%. Ebitda is expected to be up 24% to 33% for the year.
The stock is up almost 60% in the past 3 months, and that’s after a big rally into a big selloff. What’s more, it’s only trading at a current price-earnings ratio of 8.7.
Internet Stocks to Buy: Facebook (FB)
Facebook (NASDAQ:FB) continues to dominate the social media marketplace. It has billions of users and has finally found a way to make advertising a profitable enterprise for clients, customers and itself.
At this point, 95% of FB revenue comes from advertising, so that means its one source of income is crucial. It’s a very good thing its advertising revenue is going gangbusters.
By maximizing its mobile-based penetration and building targeted complementary advertising strategies across all its platforms, FB is has plenty of growth left in it.
It is also moving aggressively to incorporate its virtual-reality-driven Oculus business into the fold. VR is currently a gamers’ vanguard, but FB has bigger plans. It sees VR as part of its overall social-media strategy, eventually connecting people virtually.
For example, your friend has a baby and posts a VR video on Facebook that you can see on an Oculus headset in all its 3D-baby glory. This could be huge.
Internet Stocks to Buy: Yandex (YNDX)
Yandex NV (NASDAQ:YNDX) is Europe’s largest internet company (it’s based in the Netherlands and Moscow) and operates Russia’s largest search engine.
It operates in nine countries, which are mostly former Soviet bloc nations like Kazakhstan, Belarus and Ukraine as well as countries like Turkey.
Beyond its search engine and portal niches, it also operates an Uber-like car service in 10 cities in Russia.
Another division builds out e-commerce platforms for businesses looking to get into web commerce.
Remember, many of these countries do not have the same quantity and quality of internet service as in the West. That means their growth has a much longer tail. While these types of sectors are maturing in the West, they’re just gaining momentum in Eastern Europe and Russia.
YNDX is up more than 40% so far this year, and there’s plenty of growth left in the tank.
Internet Stocks to Buy: Wix.com (WIX)
Wix.Com Ltd (NASDAQ:WIX) is best known for its free website applications.
Most of these are for individuals and small businesses that don’t really have a budget for web designers and coders or don’t want to pay designers big money for a simple site.
It’s one of the new ways people are working outside the traditional nine-to-five office space and it’s also for companies that need a web presence but don’t have the time or expertise to build a robust site.
Wix will do it for them. For free. And this business plan has been working. This Israel-based company operates in English, French, Spanish, Portuguese, Italian, Russian, German, Japanese, Korean, Polish, Dutch, Swedish and Danish, so it has global reach.
It is also making inroads into helping people and companies develop mobile apps to complement their web pages.
Founded in 2006, it hit 1 million users just three years later. By 2014 it had 50 million users. Today it has 90 million users. That’s a very impressive growth rate. And it’s why, after an 84% run this year so far, WIX has plenty of get up and go left.
Internet Stocks to Buy: Weibo (WB)
Weibo Corp (ADR) (NASDAQ:WB) is basically like a Chinese version of Facebook. And it’s becoming very popular.
Recent numbers put week over week usage numbers at 258 million, which is up 20%. Its average time spent on the site is up 23%.
There are a couple things that make WB kind of a ground floor opportunity to get into Facebook, if you missed that one. This is simply Facebook in the Chinese market.
And there are a 1.4 billion people in that market. And one thing that is becoming apparent is that large countries prefer to develop their own technology rather than use something from another culture and country. Some of that is for security reasons and some of it is simply users are more comfortable with look and feel.
WB is up 155% so far this year, and its user growth track, mobile advertising penetration and sheer popularity mean there it a lot more to come.
Internet Stocks to Buy: Sina (SINA)
Sina Corp (NASDAQ:SINA) is a major internet player in China. It is kind of like the MSN of China.
Not only does it have its own web and mobile presence but it also owns and operates one of the social network juggernauts of China, Weibo.
This would be the equivalent of a parent company owning Facebook. WB is the big engine of growth for SINA, but it is only one of its parts.
Because China’s internet businesses have yet to work their way through the initial stages of start-ups, fads and blue chips. The space is very dynamic, but it is maturing. And SINA is becoming a significant player in the space.
Now these Chinese firms largely only operate in the Chinese market, but that market is the biggest single marketplace on the planet.
This is a great way to buy into WB’s meteoric rise while having some diversification for safety.
Louis Navellier is a renowned growth investor. He is the editor of five investing newsletters: Blue Chip Growth, Emerging Growth, Ultimate Growth, Family Trust and Platinum Growth. His most popular service, Blue Chip Growth, has a track record of beating the market 3:1 over the last 14 years. He uses a combination of quantitative and fundamental analysis to identify market-beating stocks. Mr. Navellier has made his proven formula accessible to investors via his free, online stock rating tool, PortfolioGrader.com. Louis Navellier may hold some of the aforementioned securities in one or more of his newsletters.