Wrapping up Q2 earnings, we look at the numbers and key takeaways for the consumer internet stocks, including Coinbase (NASDAQ: COIN) 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 49 consumer internet stocks we track reported a satisfactory Q2. As a group, revenues beat analysts’ consensus estimates by 4.3% while next quarter’s revenue guidance was 0.5% below.
Thankfully, share prices of the companies have been resilient as they are up 5.6% on average since the latest earnings results.
Weakest Q2: Coinbase (NASDAQ: COIN)
Widely regarded as the face of crypto, Coinbase (NASDAQ: COIN) is a blockchain infrastructure company updating the financial system with its trading, staking, stablecoin, and other payment solutions.
Coinbase reported revenues of $1.50 billion, up 3.3% year on year. This print fell short of analysts’ expectations by 4.3%. Overall, it was a disappointing quarter for the company with a significant miss of analysts’ number of monthly transacting users and EBITDA estimates.
Coinbase delivered the weakest performance against analyst estimates of the whole group. The company reported 8.7 million monthly active users, up 6.1% year on year. Unsurprisingly, the stock is down 18.8% since reporting and currently trades at $306.50.
Is now the time to buy Coinbase? Access our full analysis of the earnings results here, it’s free.
Best Q2: Skillz (NYSE: SKLZ)
Taking a new twist at video gaming, Skillz (NYSE: SKLZ) offers developers a platform to create and distribute mobile games where players can pay fees to compete for cash prizes.
Skillz reported revenues of $27.37 million, up 8.2% year on year, outperforming analysts’ expectations by 19.9%. The business had an incredible quarter with a solid beat of analysts’ EBITDA estimates.
The market seems happy with the results as the stock is up 30.6% since reporting. It currently trades at $8.67.
Is now the time to buy Skillz? Access our full analysis of the earnings results here, it’s free.
ACV Auctions (NYSE: ACVA)
Founded in 2014, ACV Auctions (NASDAQ: ACVA) is an online auction marketplace for car dealers and wholesalers to buy and sell used cars.
ACV Auctions reported revenues of $193.7 million, up 20.6% year on year, falling short of analysts’ expectations by 1.2%. It was a softer quarter as it posted a significant miss of analysts’ number of marketplace units estimates and EBITDA guidance for next quarter missing analysts’ expectations significantly.
As expected, the stock is down 10.8% since the results and currently trades at $11.90.
Read our full analysis of ACV Auctions’s results here.
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 $3.79 billion, up 6.4% year on year. This print topped analysts’ expectations by 2.1%. Overall, it was a very strong quarter as it also logged an impressive beat of analysts’ EBITDA estimates and a decent beat of analysts’ number of room nights booked estimates.
The company reported 105.5 million nights booked, up 6.7% year on year. The stock is up 13.5% since reporting and currently trades at $213.50.
Read our full, actionable report on Expedia here, it’s free.
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 $4.84 billion, up 41.9% year on year. This result beat analysts’ expectations by 5.7%. It was a very strong quarter as it also produced an impressive beat of analysts’ EBITDA estimates and impressive growth in its units.
The company reported 143,280 units sold, up 41.2% year on year. The stock is up 8.6% since reporting and currently trades at $362.13.
Read our full, actionable report on Carvana 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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