Whether it be online shopping or social media, secular forces are propelling consumer internet businesses forward. Despite the tailwinds, their demand largely hinges on consumer spending habits, which investors believe are weakening. As a result, the industry has pulled back by 17.8% over the past six months. This drawdown is a far cry from the S&P 500’s 8.4% ascent.
Despite the lackluster result, a few diamonds in the rough can produce earnings growth no matter what, and we started StockStory to help you find them. On that note, here are three internet stocks we think can generate sustainable market-beating returns.
Uber (UBER)
Market Cap: $156.3 billion
Notoriously funded with $7.7 billion from the Softbank Vision Fund, Uber (NYSE: UBER) operates a platform of on-demand services such as ride-hailing, food delivery, and freight.
Why Is UBER on Our Radar?
- Monthly Active Platform Consumers have grown by 15.1% annually, allowing for more profitable cross-selling opportunities if it can build complementary products and features
- Incremental sales significantly boosted profitability as its annual earnings per share growth of 130% over the last three years outstripped its revenue performance
- Free cash flow margin jumped by 17.5 percentage points over the last few years, giving the company more resources to pursue growth initiatives, repurchase shares, or pay dividends
Uber’s stock price of $74.44 implies a valuation ratio of 14.6x forward EV/EBITDA. Is now the right time to buy? See for yourself in our full research report, it’s free.
Upwork (UPWK)
Market Cap: $2.33 billion
Formed through the 2013 merger of Elance and oDesk, Upwork (NASDAQ: UPWK) is an online platform where businesses and independent professionals connect to get work done.
Why Does UPWK Stand Out?
- 9.4% annual increases in its average revenue per customer over the last two years show its platform is resonating with power users
- Incremental sales significantly boosted profitability as its annual earnings per share growth of 123% over the last three years outstripped its revenue performance
- Free cash flow margin expanded by 29.3 percentage points over the last few years, providing additional flexibility for investments and share buybacks/dividends
At $17.64 per share, Upwork trades at 9.1x forward EV/EBITDA. Is now the time to initiate a position? Find out in our full research report, it’s free.
Sea (SE)
Market Cap: $64.28 billion
Founded in 2009 and a publicly traded company since 2017, Sea (NYSE: SE) started as a gaming platform and has since expanded to offer a variety of services such as e-commerce, digital payments, and financial services across Southeast Asia.
Why Are We Bullish on SE?
- Has the opportunity to boost monetization through new features and premium offerings as its paying users have grown by 21.9% annually over the last two years
- Incremental sales over the last three years have been highly profitable as its earnings per share increased by 42.6% annually, topping its revenue gains
- Free cash flow margin expanded by 36.3 percentage points over the last few years, providing additional flexibility for investments and share buybacks/dividends
Sea is trading at $107.00 per share, or 16.1x forward EV/EBITDA. Is now a good time to buy? See for yourself in our in-depth research report, it’s free.
High-Quality Stocks for All Market Conditions
If your portfolio success hinges on just 4 stocks, your wealth is built on fragile ground. You have a small window to secure high-quality assets before the market widens and these prices disappear.
Don’t wait for the next volatility shock. Check out our Top 6 Stocks for this week. This is a curated list of our High Quality stocks that have generated a market-beating return of 244% over the last five years (as of June 30, 2025).
Stocks that made our list in 2020 include now familiar names such as Nvidia (+1,326% between June 2020 and June 2025) as well as under-the-radar businesses like the once-small-cap company Comfort Systems (+782% five-year return). Find your next big winner with StockStory today.
