Whether it be online shopping or social media, secular forces are propelling consumer internet businesses forward. But it’s not all sunshine and rainbows as consumer purchasing power can make or break demand. This unpredictability is weighing on the industry as its 7.6% return over the past six months has fallen short of the S&P 500’s 11.7% gain.
The elite companies can churn out earnings growth under any circumstance, however, and our mission at StockStory is to help you find them. With that said, here is one internet stock boasting a durable advantage and two we’re steering clear of.
Two Consumer Internet Stocks to Sell:
Fiverr (FVRR)
Market Cap: $339.7 million
Based in Tel Aviv, Fiverr (NYSE: FVRR) operates a fixed price global freelance marketplace for digital services.
Why Do We Think Twice About FVRR?
- Active Buyers have declined by 14% annually over the last two years, suggesting it may need to revamp its features or user experience to stay competitive
- Projected sales decline of 23% for the next 12 months points to a tough demand environment ahead
- Excessive marketing spend signals little organic demand and traction for its platform
Fiverr is trading at $9.53 per share, or 1.3x forward price-to-gross profit. Dive into our free research report to see why there are better opportunities than FVRR.
Teladoc (TDOC)
Market Cap: $1.26 billion
Founded to help people in rural areas get online medical consultations, Teladoc Health (NYSE: TDOC) is a telemedicine platform that facilitates remote doctor’s visits.
Why Are We Wary of TDOC?
- Sales were flat over the last three years, indicating it’s failed to expand its business
- Focus on expanding its platform came at the expense of monetization as its average revenue per user fell by 9.2% annually
- Estimated sales decline of 5.2% for the next 12 months implies an even more challenging demand environment
Teladoc’s stock price of $6.90 implies a valuation ratio of 8.6x forward EV/EBITDA. Check out our free in-depth research report to learn more about why TDOC doesn’t pass our bar.
One Consumer Internet Stock to Buy:
DoorDash (DASH)
Market Cap: $90.31 billion
Founded by Stanford students with the intent to build “the local, on-demand FedEx", DoorDash (NASDAQ: DASH) operates an on-demand food delivery platform.
Why Do We Love DASH?
- Orders have increased by an average of 23.5% annually, giving it the potential for margin-accretive growth if it can develop valuable complementary products and features
- Excellent EBITDA margin of 20% highlights the efficiency of its business model, and its rise over the last few years was fueled by some leverage on its fixed costs
- Additional sales over the last three years increased its profitability as the 98.3% annual growth in its earnings per share outpaced its revenue
At $210.25 per share, DoorDash trades at 20.8x forward EV/EBITDA. Is now the right time to buy? Find out in our full research report, it’s free.
Stocks We Like Even More
ALSO WORTH WATCHING: Top 5 Momentum Stocks. The best time to own a great stock is when the market is finally noticing it. These aren’t just high-quality businesses. Something is happening with them right now. Elite fundamentals meet near-term momentum — both boxes checked at the same time.
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Stocks that made our list in 2020 include now familiar names such as Nvidia (+1,460% between June 2020 and June 2025) as well as under-the-radar businesses like the once-small-cap company Exlservice (+271% between June 2020 and June 2025). Find your next big winner with StockStory today.
