As the Q1 earnings season comes to a close, it’s time to take stock of this quarter’s best and worst performers in the consumer internet industry, including Expedia (NASDAQ: EXPE) and its peers.
The ways people shop, transport, communicate, learn and play are undergoing a tremendous, technology-enabled change. Consumer internet companies are playing a key role in lives being transformed, simplified and made more accessible.
The 50 consumer internet stocks we track reported a satisfactory Q1. As a group, revenues beat analysts’ consensus estimates by 1.9% while next quarter’s revenue guidance was in line.
Luckily, consumer internet stocks have performed well with share prices up 19.6% on average since the latest earnings results.
Expedia (NASDAQ: EXPE)
Originally founded as a part of Microsoft, Expedia (NASDAQ: EXPE) is one of the world’s leading online travel agencies.
Expedia reported revenues of $2.99 billion, up 3.4% year on year. This print fell short of analysts’ expectations by 0.8%. Overall, it was a slower quarter for the company with a slight miss of analysts’ number of room nights booked estimates.
Interestingly, the stock is up 8.1% since reporting and currently trades at $182.83.
Read our full report on Expedia here, it’s free.
Best Q1: Carvana (NYSE: CVNA)
Known for its glass tower car vending machines, Carvana (NYSE: CVNA) provides a convenient automotive shopping experience by offering an online platform for buying and selling used cars.
Carvana reported revenues of $4.23 billion, up 38.3% year on year, outperforming analysts’ expectations by 6.2%. The business had an exceptional quarter with an impressive beat of analysts’ EBITDA estimates and impressive growth in its units.
The market seems happy with the results as the stock is up 33.8% since reporting. It currently trades at $346.10.
Is now the time to buy Carvana? Access our full analysis of the earnings results here, it’s free.
Weakest Q1: The RealReal (NASDAQ: REAL)
Founded by consignment store aficionado Julie Wainwright, The RealReal (NASDAQ: REAL) is an online marketplace for buying and selling secondhand luxury goods.
The RealReal reported revenues of $160 million, up 11.3% year on year, in line with analysts’ expectations. It was a slower quarter as it posted full-year EBITDA guidance missing analysts’ expectations.
As expected, the stock is down 28.4% since the results and currently trades at $5.23.
Read our full analysis of The RealReal’s results here.
Wayfair (NYSE: W)
Founded in 2002 by Niraj Shah, Wayfair (NYSE: W) is a leading online retailer of mass-market home goods in the US, UK, Canada, and Germany.
Wayfair reported revenues of $2.73 billion, flat year on year. This number topped analysts’ expectations by 0.7%. More broadly, it was a mixed quarter as it also logged an impressive beat of analysts’ EBITDA estimates but a decline in its buyers.
The company reported 21.1 million active buyers, down 5.4% year on year. The stock is up 85.3% since reporting and currently trades at $55.95.
Read our full, actionable report on Wayfair here, it’s free.
Angi (NASDAQ: ANGI)
Created by IAC’s mergers of Angie’s List and HomeAdvisor, ANGI (NASDAQ: ANGI) operates the largest online marketplace for home services in the US.
Angi reported revenues of $245.9 million, down 19.5% year on year. This print beat analysts’ expectations by 2.7%. It was a strong quarter as it also recorded an impressive beat of analysts’ EBITDA estimates and a decent beat of analysts’ number of service requests estimates.
The company reported 3.36 million service requests, down 18.5% year on year. The stock is up 42.8% since reporting and currently trades at $16.06.
Read our full, actionable report on Angi here, it’s free.
Market Update
In response to the Fed’s rate hikes in 2022 and 2023, inflation has been gradually trending down from its post-pandemic peak, trending closer to the Fed’s 2% target. Despite higher borrowing costs, the economy has avoided flashing recessionary signals. This is the much-desired soft landing that many investors hoped for. The recent rate cuts (0.5% in September and 0.25% in November 2024) have bolstered the stock market, making 2024 a strong year for equities. Donald Trump’s presidential win in November sparked additional market gains, sending indices to record highs in the days following his victory. However, debates continue over possible tariffs and corporate tax adjustments, raising questions about economic stability in 2025.
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