Can you guess what percentage of the world’s population has access to the internet?
Only 50.1% of the world’s population has accessed the internet, according to InternetUsageStats.com. Internet usage has skyrocketed to 900% over the last 16 years and still has a ton of growth opportunity.
With more people accessing the web via their smart phone, you will see companies post larger revenue numbers and net profits as more individuals get connected online.
The problem is there are many internet stocks to buy so how do you choose the best ones? We are here to help you save time and identify the most popular and lucrative internet stocks to invest in.
We compiled a list of the 10 best internet stocks for 2017 that sustain strong revenue growth, high visitor traffic, and long term profits. If you want to buy a piece of the internet, then these are the best internet stocks to consider for your portfolio.
10 Best Internet Stocks for 2017
|Company Name||Symbol||Monthly Active Users|
|eBay, Inc.||EBAY||1.1 Billion|
|Facebook, Inc.||FB||25 Billion|
|Alphabet, Inc.||GOOG||17 Billion|
|Tripadvisor, Inc.||TRIP||131 million|
|Amazon, Inc.||TRIP||2.5 Billion|
|Netflix, Inc.||NFLX||1.36 Billion|
|Paypal, Inc.||PYPL||519 Million|
|Yelp, Inc.||YELP||145 Million|
|Twitter, Inc.||TWTR||3.2 Billion|
|Linkedin, Inc.||LNKD||947 Million|
1. Ebay, Inc. (EBAY)
eBay Inc. operates commerce platforms that connect various buyers and sellers worldwide. Its platforms enable sellers to organize and offer their inventory for sale; and buyers to find and purchase it virtually.
The companys Marketplace platforms include its online marketplace at ebay.com and the eBay mobile apps; and StubHub platforms comprise its online ticket platform at stubhub.com, and the StubHub mobile apps and Ticketbis platforms that connect fans with their favorite sporting events, shows, and artists, as well as enables them to buy and sell tickets.
Its Classifieds platforms include a collection of brands, such as mobile.de, Kijiji, Gumtree, Marktplaats, eBay Kleinanzeigen, and others, which offer online classifieds to enable people find whatever they are looking for in their local communities.
eBay Inc. was founded in 1995 and is headquartered in San Jose, California.
2. Facebook, Inc. (FB)
Facebook, Inc. provides various products to connect and share through mobile devices, personal computers, and other surfaces worldwide. Its solutions include Facebook Website and mobile application that enables people to connect, share, discover, and communicate each other on mobile devices and personal computers; Instagram, a mobile application that enables people to take photos or videos, customize them with filter effects, and share them with friends and followers in a photo feed or send them directly to friends; Messenger, a messaging application to communicate with people and businesses across platforms and devices; and WhatsApp Messenger, a mobile messaging application.
Facebook, Inc. was founded in 2004 and is headquartered in Menlo Park, California.
As of December 31, 2016, it had approximately 1.23 billion daily active users.
3. Alphabet, Inc (GOOG)
Alphabet Inc. was founded in 1998 and is headquartered in Mountain View, California.
Alphabet Inc., through its subsidiaries, provides online advertising services in the United States, the United Kingdom, and rest of the world. The company offers performance and brand advertising services. It operates through Google and Other Bets segments. The Google segment includes principal Internet products, such as Search, Ads, Commerce, Maps, YouTube, Google Cloud, Android, Chrome, and Google Play, as well as technical infrastructure and newer efforts, including Virtual Reality.
4. TripAdvisor, Inc (TRIP)
TripAdvisor, Inc. operates as an online travel company. The company operates through two segments, Hotel and Other. Its travel research platform aggregates reviews and opinions about destinations, accommodations, activities and attractions, and restaurants for consumers to plan their trips, as well as enables to book hotels, vacation rentals, flights, activities and attractions, and restaurants.
The companys Websites feature 320 million reviews and opinions on 6.2 million places, including 995,000 hotels and accommodations; 770,000 vacation rentals; 3.8 million restaurants; and 625,000 attractions worldwide. TripAdvisor, Inc. was founded in 2000 and is headquartered in Needham, Massachusetts.
5. Amazon, Inc. (AMZN)
Amazon.com, Inc. engages in the retail sale of consumer products in North America and internationally. It operates through the North America, International, and Amazon Web Services (AWS) segments. The company sells merchandise and content purchased for resale from vendors, as well as those offered by third-party sellers through retail Websites, such as amazon.com, amazon.ca, amazon.com.mx, amazon.com.au, amazon.com.br, amazon.cn, amazon.fr, amazon.de, amazon.in, amazon.it, amazon.co.jp, amazon.nl, amazon.es, and amazon.co.uk.
It also manufactures and sells electronic devices, including kindle e-readers, fire tablets, fire TVs, and echo, as well as fire phones; and provides Kindle Direct Publishing, an online platform that allows independent authors and publishers to make their books available in the Kindle Store.
The company was founded in 1994 and is headquartered in Seattle, Washington.
6. Netflix, Inc. (NFLX)
Netflix, Inc., an Internet television network, engages in the Internet delivery of television (TV) shows and movies on various Internet-connected screens. The company operates in three segments: Domestic Streaming, International Streaming, and Domestic DVD. It offers members with the ability to receive streaming content through a host of Internet-connected screens, including TVs, digital video players, television set-top boxes, and mobile devices.
The company also provides DVDs-by-mail membership services. It serves approximately 93 million streaming members in 190 countries. Netflix, Inc. was founded in 1997 and is headquartered in Los Gatos, California.
7. Paypal, Inc. (PYPL)
PayPal Holdings, Inc. operates as a technology platform company that enables digital and mobile payments on behalf of consumers and merchants worldwide. It enables businesses of various sizes to accept payments from merchant Websites, mobile devices, and applications, as well as at offline retail locations through a range of payment solutions, including PayPal, PayPal Credit, Braintree, Venmo, and Xoom products. The company’s platform allows customers to pay and get paid, transfer and withdraw funds to their bank accounts, and hold balances in their PayPal accounts in various currencies. PayPal Holdings, Inc. was founded in 1998 and is headquartered in San Jose, California.
8. Yelp, Inc. (YELP)
Yelp Inc. operates a platform that connects people with local businesses primarily in the United States. Its platform covers various local business categories, including restaurants, shopping, beauty and fitness, arts, entertainment and events, home and local services, health, nightlife, travel and hotel, auto, and others categories. The company provides free and paid business listing services to businesses of various sizes, as well as enables businesses to deliver targeted search advertising to large local audiences through its Website and mobile app. The company was founded in 2004 and is headquartered in San Francisco, California.
9. Twitter, Inc. (TWTR)
Twitter, Inc. operates as a global platform for public self-expression and conversation in real time. The company offers various products and services, including Twitter that allows users to create, distribute, and discover content; and Periscope and Vine, a mobile application that enables user to broadcast and watch video live. It also provides promoted products and services, such as promoted tweets, promoted accounts, and promoted trends that enable its advertisers to promote their brands, products, and services; and subscription access to its data feed for data partners.
In addition, the company offers a set of tools, public APIs, and embeddable widgets for developers to contribute their content to its platform; syndicate and distribute Twitter content across their properties; and enhance their Websites and applications with Twitter content. Twitter, Inc. was founded in 2006 and is headquartered in San Francisco, California.
10. Linkedin, Inc. (LNKD)
LinkedIn Corporation (LinkedIn) is a professional network on the Internet with approximately 400 million members in over 200 countries and territories. The Company provides the majority of its products at no cost to its members. Linkedin, Inc. was founded in 2002 and is headquartered in Mountain View, California.
Internet Stock Buyer’s Guide – How to Pick the Best Stocks
Unlike brick and mortar businesses, you may notice that internet companies tend to come and go. AOL & Yahoo! dominated search before Google. Myspace was king before Facebook took over the throne. The internet requires a different type of business to succeed because changes can be implemented extremely fast.
Key Internet Stock Factors to Consider
There are several factors that you want to pay attention to when looking for the best internet stocks to buy:
- Brand & Moat – Select companies with an established brand and competitive advantage over their competition (ex. Facebook).
- Physical Product Distribution – People need everyday products and companies that sell physical goods have a higher chance of succeeding in the long term (ex. Amazon.com).
- Loyal Userbase – Certain companies build a loyal following that falls in love with their core product (ex. Netflix).
- User Generated Content – Companies that thrive on user generated content dedicate less capital to content creation and can focus on increasing traffic and boosting net profits (ex. eBay).
Target Stocks with high Monthly Active Visitors
It’s easier to increase revenue when your monthly active visitors keeps increasing. I like to invest in internet companies with a huge and fast growing visitor total. If you look at the chart above, you will notice several companies attract well over 1 billion visitors per month.
These are incredible traffic numbers and show how dominate these websites are in their respective market. The one exception is Paypal who doesn’t have billions of visitors, but earns money through transaction volume. They don’t need large traffic to make good money.
Social Media Websites Are the Riskiest Stocks to Invest In
Social media is the biggest craze around the internet, but investing too much money in social media stocks can be dangerous. These companies deliver zero physical products, meaning they need to sell advertisements to make money. If you remember just a few years ago, Myspace was the largest social media site on the internet.
However, they lost their power due to the anonymity of its userbase. People are looking for transparency nowadays so companies like Facebook and Linkedin have a better chance of staying profitable in the future.
Final Thougts and Closing Statements
Internet stocks provide an awesome opportunity for fast growth due to their viral nature. However, you must analyze each company individually and take a look at key data stats like P/E Ratio, Earnings Per Share growth, monthly active users, and overall market capitalization.
All these factors help build an honest assessment of each internet stock to help you make the right decision with your money.
Did I miss an internet stock to buy? Please leave any companies I forget about in the comments.
While his background is mostly related to trading stocks, he recently gained interest in real estate crowdfunding with Fundrise.