By breaking down physical barriers, consumer internet businesses are reshaping how people shop, connect, learn, and play. The new habits they’re cultivating are also unlocking the next leg of growth for the industry, which has gained 14.2% over the past six months compared to 10.8% for the S&P 500.
Nevertheless, investors should tread carefully as many internet companies pursue winner-take-all strategies, meaning losses can be hefty if their playbooks don’t pan out. Keeping that in mind, here are two resilient internet stocks at the top of our wish list and one we would avoid.
One Consumer Internet Stock to Sell:
Yelp (YELP)
Market Cap: $1.29 billion
Founded by PayPal alumni Jeremy Stoppelman and Russel Simmons, Yelp (NYSE:YELP) is an online platform that helps people discover local businesses through crowd-sourced reviews.
Why Are We Hesitant About YELP?
- 5.1% annual revenue growth over the last three years was slower than its consumer internet peers
- Sales are projected to remain flat over the next 12 months as demand decelerates from its three-year trend
- Excessive marketing spend signals little organic demand and traction for its platform
Yelp is trading at $23.65 per share, or 4.4x forward EV/EBITDA. Read our free research report to see why you should think twice about including YELP in your portfolio.
Two Consumer Internet Stocks to Buy:
Robinhood (HOOD)
Market Cap: $100.8 billion
With a mission to democratize finance, Robinhood (NASDAQ:HOOD) is an online consumer finance platform known for its commission-free stock and crypto trading.
Why Are We Bullish on HOOD?
- Strong engagement trends coupled with 91.2% annual growth in its average revenue per user demonstrate its platform’s stickiness with die-hard customers
- Share repurchases over the last three years enabled its annual earnings per share growth of 395% to outpace its revenue gains
- HOOD is a free cash flow machine with the flexibility to invest in growth initiatives or return capital to shareholders
At $111.21 per share, Robinhood trades at 30.1x forward EV/EBITDA. Is now the right time to buy? Find out in our full research report, it’s free.
MercadoLibre (MELI)
Market Cap: $101.2 billion
Originally started as an online auction platform, MercadoLibre (NASDAQ:MELI) is a one-stop e-commerce marketplace and fintech platform in Latin America.
What Makes MELI Stand Out?
- Monetization efforts are paying off as its average revenue per user has grown by 63.1% annually over the last two years
- Earnings per share have massively outperformed its peers over the last three years, increasing by 35% annually
- Impressive free cash flow profitability enables the company to fund new investments or reward investors with share buybacks/dividends, and its rising cash conversion increases its margin of safety
MercadoLibre’s stock price of $1,994 implies a valuation ratio of 20.3x forward EV/EBITDA. Is now a good time to buy? See for yourself in our in-depth research report, it’s free.
Stocks We Like Even More
ONE MORE THING: Top 6 Stocks for This Week. This market is separating quality stocks from expensive ones fast. AI is taking down whole sectors with no warning. In a rotation this fast, you need more than a list of good companies.
Our AI system flagged Palantir before it ran 1,662% between October 2022 and February 2026. AppLovin before it ran 753% between February 2024 and February 2026. Nvidia before it ran 1,178% between January 2023 and February 2026. Each week it produces 6 new names that pass the same tests. Get Our Top 6 Stocks for Free HERE.
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.