Consumer internet businesses are redefining how people engage with the world by giving them instant connectivity and convenience. The new habits they're cultivating are also unlocking the next leg of growth for the industry, which has gained 12.3% over the past six months compared to 8.6% for the S&P 500.
However, long-term winners that can stand the test of time are rare in this space because competition is fierce with many well-capitalized companies. On that note, here are two internet stocks boasting durable advantages and one we're swiping left on.
Market Cap: $777.9 million
Originally featuring a library that included many of founder Jon Oringer's photos, Shutterstock (NYSE:SSTK) is now a digital platform where customers can license and use hundreds of millions of pieces of content.
Why Are We Wary of SSTK?
At $21.93 per share, Shutterstock trades at 6x forward EV/EBITDA. To fully understand why you should be careful with SSTK, check out our full research report (it's free).
Market Cap: $3.93 billion
With Amazon founder Jeff Bezos as an early investor, Remitly (NASDAQ:RELY) is an online platform that enables consumers to safely and quickly send money globally.
Why Should You Buy RELY?
Remitly's stock price of $19.05 implies a valuation ratio of 17.7x forward EV/EBITDA. Is now the right time to buy? Find out in our full research report, it's free.
Market Cap: $123.2 billion
Originally started as an online auction platform, MercadoLibre (NASDAQ:MELI) is a one-stop e-commerce marketplace and fintech platform in Latin America.