The markets may be a bit volatile now, especially given the trade war back and forth among the U.S. and China, Europe and Canada, but that doesn’t mean there aren’t good opportunities out there. It just takes a bit of imagination.
For example, tech firms, like the 10 A-rated internet stocks listed below, are in no way going to feel the pinch of any trade war. And most, aren’t really that reliant on a rebounding economy, although it helps.
The point is, these firms are well placed to take advantage of the rising power of generations (millennials and GenZers) of digital natives. Millions of young people that live on their digital devices.
Advertising is moving to the web from television, so free sites (at least initially) that derive revenue from ads are growing rapidly again. And subscription sites are doing well because the economy is improving.
Plus, since these are smaller companies, a quickening pace of economic growth will magnify their gains since they can take advantage of opportunities faster and it boosts their top and bottom lines faster as well.
A-Rated Internet Stocks: IAC (IAC)
IAC (NASDAQ:IAC) is basically a tech holding company that owns some of the biggest properties in the business. Most of its divisions are spun off into their own stocks (one is actually featured below) but IAC runs the show.
That gives it some diversity among its strategic divisions — dating sites, home site, video and publishing. And when everything is firing on all cylinders, like it has been recently, IAC stock benefits mightily.
And with a variety of divisions, it means a weak division will be helped by a cyclically stronger one.
This is what has helped IAC stock almost triple the performance of the S&P 500 year to date. And this kind of performance has been building for almost two years now.
A-Rated Internet Stocks: GrubHub (GRUB)
GrubHub Inc (NYSE:GRUB) is up more than 50% year to date. But its growth says that this isn’t overly enthusiastic.
Granted, this food delivery service has a nearly $10 billion market cap but is on track for slightly over $1 billion in revenue for the year. That’s kind of pricey. But GRUB is making smart partnership deals and has a concept that is easily scalable.
What’s more, there are still plenty of opportunities out there. And once it can establish a national foothold in significant markets, it’s going to be tough to compete.
It’s in that fast-growth stage now, like the Uber growth in car services. When GrubHub becomes a verb, you know it’s made it. And from there the growth really begins.
A-Rated Internet Stocks: GoDaddy (GDDY)
GoDaddy Inc (NYSE:GDDY) has been around quite a while and has managed to establish itself as a solid player in the internet space.
Its recent earnings have helped keep the good times rolling, growing its numbers across the board by healthy double digits for sequential quarters. And its $12 billion market cap looks pretty good as it delivers about $2.6 billion in revenue annually.
The stock was up over 70% in the past 12 months. That has been a strong move reflecting the rising fortunes of the economy. While that pace might not be the norm, half of that wouldn’t be surprising moving forward.
A-Rated Internet Stocks: Match Group (MTCH)
Match Group (NASDAQ:MTCH) is a spinoff from IAC. While IAC controls of majority of voting shares, MTCH is IAC’s independent dating site division.
It hosts names such as Match.com, Tinder, PlentyofFish, OKCupid and a number of others. It also has an education segment that supports online tutoring and test preparation.
Online dating is becoming increasingly common, not only among younger generations, but older ones, too. Mobile tech has allowed us to seemingly lower the risk of meeting potential mates by using algorithms. And as long as people find this preferable to meeting someone in a bar or the gym, it has huge potential. And it shows in MTCH’s numbers — up 37% year to date.
And those numbers keep growing.
A-Rated Internet Stocks: CoStar Group (CSGP)
CoStar Group (NASDAQ:CSGP) has had a very good year so far, up around 40% year to date. Much of this continued success can be attributed to the fact that it is an integrated data provider for the commercial real estate space in the U.S. and in a handful of large European countries.
While residential real estate has had its issues given rising rates, low supply and growing demand, commercial real estate has different opportunities.
For example, in Europe, many companies are looking to relocate offices in the UK to the continent because of Brexit. In the U.S., companies are also looking to relocate workforces to smaller cities where operations are less expensive and the cost of living is cheaper for employees.
This makes for a lot of demand for CSGP services — and this trend is just beginning.
A-Rated Internet Stocks: SharpSpring (SHSP)
SharpSpring (NASDAQ:SHSP) is a cloud-based marketing automation platform for both businesses and agencies.
Basically, that means a business that wants to automate its sales and marketing operations so it can scale faster will look to SHSP to help it with its various suites of products. And if a company is working with a design or marketing agency, they can buy SHSP services to use with their clients.
Given the number of small business looking for scalability without adding a lot of fixed labor costs (i.e., employees), this is the perfect solution. And it seems like business is doing well — SHSP stock is up more than 100% year to date.
Granted this firm only has a market cap of $76 million, so huge growth is easy in the beginning. However, this kind of demand means it has a solid product, which means bigger firms in the sector could snap it up at a nice premium.
A-Rated Internet Stocks: Glu Mobile (GLUU)
Glu Mobile Inc (NASDAQ:GLUU) is a developer and publisher of mobile games. It’s relatively new on the scene, yet has garnered some popular titles.
The stock tends to be somewhat volatile, given the tastes and trends of the mobile gaming industry, which is still a very dynamic market. And given its size, it’s one of the more cyclical plays on the list.
But right now, GLUU is doing well — like up 81% year to date well — and this trend should continue.
It is also a good buy for some of the more dominant game companies if GLUU adds another popular game or two to its arsenal in coming quarters.
A-Rated Internet Stocks: Stamps.com (STMP)
Stamps.com (NASDAQ:STMP) stock was up nearly 50% year to date a couple days ago. Today, it’s up 34% year to date.
President Donald Trump expressed a desire to privatize the U.S. Postal Service as part of vision to reorganize the U.S. government.
Given the fact that STMP is a digital go-between for business, individuals and others with the USPS, that can be disturbing news, indeed.
However, the president is well known for saying something controversial and then doing something completely different, or nothing at all. And unwinding the USPS is not something that could be done by executive order, and certainly not in an election year.
That means this quick drop is a good entry point.
A-Rated Internet Stocks: Sify Technologies (SIFY)
Sify Technologies Ltd (ADR) (NASDAQ:SIFY) is an integrated internet provider in India.
There are two key factors to unpack here. First, India is the second-most-populous country in the world, behind China. And its government is more pro-Western than China. That means there is great opportunity for U.S. investors to take advantage of the opportunities that India presents as it modernizes over the next decade or two.
Second, the Indian market has huge growth potential, but it’s very difficult for individual investors to directly invest. SIFY is a great chance to invest in India but do so through U.S. markets.
The stock is up 12% year to date, but this is a long-term growth buy at a solid valuation.
A-Rated Internet Stocks: Blucora (BCOR)
Blucora Inc (NASDAQ:BCOR) is a technology-enabled financial solutions firm that sells its tax and investment solutions to consumers, businesses and tax professionals.
The trend here is the digitization of the tax return process on both state and federal levels. Recent court cases have approved the ability of states to make taxpayers file online only.
This is just another digitization of major sectors — healthcare, banking, investing, etc. And BCOR is building a very solid reputation in the sector.
With a $1.8 billion market cap, it isn’t a huge firm, but it’s getting noticed. The stock is up almost 75% year to date. And this is a sleepy sector, so that kind of move is significant.
Louis Navellier is a renowned growth investor. He is the editor of four investing newsletters: Growth Investor, Breakthrough Stocks, Accelerated Profits and Platinum Growth. His most popular service, Growth Investor, 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.
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