Consumer internet businesses are redefining how people engage with the world by giving them instant connectivity and convenience. But it’s not all sunshine and rainbows as consumer purchasing power can make or break demand. This unpredictability is weighing on returns as the industry has posted a flat return over the past six months while the S&P 500 was up 5.2%.
The elite companies can churn out earnings growth under any circumstance, however, and our mission at StockStory is to help you find them. Keeping that in mind, here are three internet stocks we think can generate sustainable market-beating returns.
Match Group (MTCH)
Market Cap: $9.21 billion
Originally started as a dial-up service before widespread internet adoption, Match (NASDAQ:MTCH) was an early innovator in online dating and today has a portfolio of apps including Tinder, Hinge, Archer, and OkCupid.
Why Does MTCH Stand Out?
- Customer spending is rising as the company has focused on monetization over the last two years, leading to 8.9% annual growth in its average revenue per user
- Highly efficient business model is illustrated by its impressive 36.3% EBITDA margin
- Impressive free cash flow profitability enables the company to fund new investments or reward investors with share buybacks/dividends, and its recently improved profitability means it has even more resources to invest or distribute
At $38.59 per share, Match Group trades at 7.8x forward EV/EBITDA. Is now the right time to buy? Find out in our full research report, it’s free.
Netflix (NFLX)
Market Cap: $526.5 billion
Launched by Reed Hastings as a DVD mail rental company until its famous pivot to streaming in 2007, Netflix (NASDAQ: NFLX) is a pioneering streaming content platform.
Why Should You Buy NFLX?
- Has the opportunity to boost monetization through new features and premium offerings as its global streaming paid memberships have grown by 13.9% annually over the last two years
- Performance over the past three years was turbocharged by share buybacks, which enabled its earnings per share to grow faster than its revenue
- Free cash flow margin increased by 19.9 percentage points over the last few years, giving the company more capital to invest or return to shareholders
Netflix is trading at $1,237 per share, or 35.7x forward EV/EBITDA. Is now the time to initiate a position? See for yourself in our in-depth research report, it’s free.
Reddit (RDDT)
Market Cap: $46.13 billion
Founded in 2005 by two University of Virginia roommates, Reddit (NYSE:RDDT) facilitates user-generated content across niche communities (called subreddits) that discuss anything from stocks to dating and memes.
Why Will RDDT Outperform?
- Domestic Daily Active Visitors are rising, meaning the company can increase revenue without incurring additional customer acquisition costs if it can cross-sell additional products and features
- Earnings per share have massively outperformed its peers over the last three years, increasing by 38.6% annually
- Free cash flow margin increased by 35.1 percentage points over the last few years, giving the company more capital to invest or return to shareholders
Reddit’s stock price of $246.77 implies a valuation ratio of 64.4x 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
When Trump unveiled his aggressive tariff plan in April 2025, markets tanked as investors feared a full-blown trade war. But those who panicked and sold missed the subsequent rebound that’s already erased most losses.
Don’t let fear keep you from great opportunities and take a look at Top 5 Growth Stocks for this month. This is a curated list of our High Quality stocks that have generated a market-beating return of 183% over the last five years (as of March 31st 2025).
Stocks that made our list in 2020 include now familiar names such as Nvidia (+1,545% between March 2020 and March 2025) as well as under-the-radar businesses like the once-micro-cap company Tecnoglass (+1,754% five-year return). Find your next big winner with StockStory today for free. Find your next big winner with StockStory today. Find your next big winner with StockStory today
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