2 Internet Stocks to Watch and 1 to Ignore

Consumer internet businesses are transforming the way people interact with the world by offering instant connectivity and convenience. However, this sector is not without its challenges, as consumer purchasing power can significantly impact demand. The market seems to be bracing for a difficult period, with the industry experiencing a 4.4% decline over the past six months—contrasting sharply with the S&P 500's 8.7% gain.

While the broader market has shown resilience, certain companies have managed to maintain earnings growth regardless of the economic climate. At StockStory, our goal is to identify these resilient players. Below are three internet stocks that stand out: one we recommend selling, two we suggest watching closely, and a few others that have historically delivered strong returns.

One Consumer Internet Stock to Sell:

Etsy (ETSY)

Market Cap: $8.14 billion

Founded by Robert Kalin, an amateur furniture maker, and his two friends, Etsy has become one of the largest online marketplaces focused on handmade or vintage items.

Why Are We Hesitant About ETSY?

• Struggled with new customer acquisition as its active buyers averaged a 1.7% decline
• Estimated sales decline of 2.1% for the next 12 months suggests a challenging demand environment
• Earnings per share were flat over the last three years while its revenue grew, indicating less profitable incremental sales

Etsy is currently trading at $85.10 per share, or 14.4x forward EV/EBITDA.

Read our free research report to see why you should think twice about including ETSY in your portfolio.

Two Consumer Internet Stocks to Watch:

Lyft (LYFT)

Market Cap: $6.16 billion

Originally founded as Zimride, a long-distance intercity carpooling company by Logan Green and John Zimmer, Lyft has grown into a major ridesharing network operating in the US and Canada.

Why Do We Love LYFT?

• Active riders are increasing, which means the company can boost revenue without additional customer acquisition costs if it successfully cross-sells products and features
• Incremental sales have significantly improved profitability, with annual earnings per share growing by 69.1% over the last three years, outpacing revenue growth
• Free cash flow margin has increased by 24.1 percentage points over the last few years, providing more capital for investment or shareholder returns

Lyft’s stock price of $16.18 implies a valuation ratio of 7.8x forward EV/EBITDA. Is now a good time to buy?

Find out in our full research report, it’s free.

Coursera (COUR)

Market Cap: $1.59 billion

Founded by two Stanford University computer science professors, Coursera is an online learning platform offering courses, specializations, and degrees from top universities and organizations globally.

Why Are We Positive on COUR?

• Exciting sales outlook for the upcoming 12 months predicts 82.6% growth, showing acceleration from its three-year trend
• EBITDA profits have increased over the last few years due to better leverage on fixed costs and improved efficiency
• Incremental sales have boosted profitability, with annual earnings per share growing by 47.3% over the last three years, outperforming revenue growth

At $5.59 per share, Coursera trades at 0.9x forward EV/EBITDA. Is now the right time to buy?

See for yourself in our comprehensive research report, it’s free.

Stocks We Like Even More

ONE MORE THING: Top 5 Growth Stocks.

The biggest stock winners often had one thing in common before they surged: rapid revenue growth. Companies like Meta, CrowdStrike, and Broadcom exemplify this trend, with returns of 315%, 314%, and 455% respectively.

Find out which five stocks our AI is flagging this month — FREE.

Get Our Top 5 Growth Stocks for Free HERE.

Stocks that made our list in 2020 include well-known names such as Nvidia, which saw a 1,460% increase between June 2020 and June 2025, as well as under-the-radar businesses like Kadant, which rose by 214% during the same period.

Find your next big winner with StockStory today.

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