2 Internet Stocks to Target This Week and 1 Facing Headwinds

Consumer internet businesses are redefining how people engage with the world by giving them instant connectivity and convenience. The new habits they’re cultivating are also unlocking the next leg of growth for the industry, which has gained 12.3% over the past six months compared to 8.6% for the S&P 500.

However, long-term winners that can stand the test of time are rare in this space because competition is fierce with many well-capitalized companies. On that note, here are two internet stocks boasting durable advantages and one we’re swiping left on.

One Consumer Internet Stock to Sell:

Shutterstock (SSTK)

Market Cap: $777.9 million

Originally featuring a library that included many of founder Jon Oringer’s photos, Shutterstock (NYSE:SSTK) is now a digital platform where customers can license and use hundreds of millions of pieces of content.

Why Are We Wary of SSTK?

1. Customer spending has dipped by 5.4% on average as it focused on growing its requests
2. Estimated sales growth of 1.6% for the next 12 months implies demand will slow from its three-year trend
3. Free cash flow margin shrank by 16.5 percentage points over the last few years, suggesting the company is consuming more capital to stay competitive

At $21.93 per share, Shutterstock trades at 6x forward EV/EBITDA. Check out our free in-depth research report to learn more about why SSTK doesn’t pass our bar.

Two Consumer Internet Stocks to Buy:

Remitly (RELY)

Market Cap: $3.93 billion

With Amazon founder Jeff Bezos as an early investor, Remitly (NASDAQ:RELY) is an online platform that enables consumers to safely and quickly send money globally.

Why Should You Buy RELY?

1. Active Customers are rising, meaning the company can increase revenue without incurring additional customer acquisition costs if it can cross-sell additional products and features
2. Additional sales over the last three years increased its profitability as the 76.4% annual growth in its earnings per share outpaced its revenue
3. Free cash flow margin increased by 33.7 percentage points over the last few years, giving the company more capital to invest or return to shareholders

Remitly’s stock price of $19.05 implies a valuation ratio of 17.7x forward EV/EBITDA. Is now the right time to buy? Find out in our full research report, it’s free.

MercadoLibre (MELI)

Market Cap: $123.2 billion

Originally started as an online auction platform, MercadoLibre (NASDAQ:MELI) is a one-stop e-commerce marketplace and fintech platform in Latin America.

Why Will MELI Outperform?

1. Unique Active Buyers have increased by an average of 20.7% annually, giving it the potential for margin-accretive growth if it can develop valuable complementary products and features
2. Grip over its ecosystem is highlighted by its ability to grow engagement while increasing the average revenue per user by 15.5% annually
3. 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 is trading at $2,427 per share, or 24.4x forward EV/EBITDA. Is now a good time to buy? See for yourself in our comprehensive research report, it’s free.

High-Quality Stocks for All Market Conditions

Trump’s April 2025 tariff bombshell triggered a massive market selloff, but stocks have since staged an impressive recovery, leaving those who panic sold on the sidelines.

Take advantage of the rebound by checking out our Top 5 Growth Stocks for this month. This is a curated list of our High Quality stocks that have generated a market-beating return of 183% over the last five years (as of March 31st 2025).

Stocks that made our list in 2020 include now familiar names such as Nvidia (+1,545% between March 2020 and March 2025) as well as under-the-radar businesses like the once-micro-cap company Kadant (+351% five-year return). Find your next big winner with StockStory today for free. Find your next big winner with StockStory today. Find your next big winner with StockStory today

StockStory is growing and hiring equity analyst and marketing roles. Are you a 0 to 1 builder passionate about the markets and AI? See the open roles here.