1 Internet Stock on Our Buy List and 2 We Avoid

Consumer internet businesses are redefining how people engage with the world by giving them instant connectivity and convenience. This influence cuts both ways though because they have high exposure to the ups and downs of consumer spending, and uncertainty surrounding this factor has capped the industry’s returns - over the past six months, its 9.4% gain has lagged the S&P 500 by 7 percentage points.

Only some companies are subject to these dynamics, however, and a handful of high-quality businesses can deliver earnings growth in any environment. On that note, here is one resilient internet stock at the top of our wish list and two we’re swiping left on.

Two Consumer Internet Stocks to Sell:

Angi (ANGI)

Market Cap: $487.6 million

Created by IAC’s mergers of Angie’s List and HomeAdvisor, ANGI (NASDAQ: ANGI) operates the largest online marketplace for home services in the US.

Why Is ANGI Not Exciting?

1. Value proposition isn’t resonating strongly as its service requests averaged 20.6% drops over the last two years
2. Estimated sales for the next 12 months are flat and imply a softer demand environment
3. High marketing expenses suggest it needs to spend heavily on new customer acquisition to sustain momentum

Angi’s stock price of $11.40 implies a valuation ratio of 3.4x forward EV/EBITDA. Read our free research report to see why you should think twice about including ANGI in your portfolio.

Expedia (EXPE)

Market Cap: $33.53 billion

Originally founded as a part of Microsoft, Expedia (NASDAQ:EXPE) is one of the world’s leading online travel agencies.

Why Do We Think Twice About EXPE?

1. Sizable revenue base leads to growth challenges as its 8.3% annual revenue increases over the last three years fell short of other consumer internet companies
2. Customer spending has dipped by 1.7% on average as it focused on growing its bookings
3. Highly competitive market means it’s on the never-ending treadmill of sales and marketing spend

At $273.20 per share, Expedia trades at 9.5x forward EV/EBITDA. To fully understand why you should be careful with EXPE, check out our full research report (it’s free for active Edge members).

One Consumer Internet Stock to Buy:

Upwork (UPWK)

Market Cap: $2.23 billion

Formed through the 2013 merger of Elance and oDesk, Upwork (NASDAQ:UPWK) is an online platform where businesses and independent professionals connect to get work done.

Why Are We Bullish on UPWK?

1. 9.4% annual increases in its average revenue per customer over the last two years show its platform is resonating with power users
2. Incremental sales significantly boosted profitability as its annual earnings per share growth of 123% over the last three years outstripped its revenue performance
3. Free cash flow margin jumped by 29.3 percentage points over the last few years, giving the company more resources to pursue growth initiatives, repurchase shares, or pay dividends

Upwork is trading at $17.03 per share, or 10.8x forward EV/EBITDA. Is now the right time to buy? See for yourself in our full research report, it’s free for active Edge members.

Stocks We Like Even More

If your portfolio success hinges on just 4 stocks, your wealth is built on fragile ground. You have a small window to secure high-quality assets before the market widens and these prices disappear.

Don’t wait for the next volatility shock. Check 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 244% over the last five years (as of June 30, 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-small-cap company Exlservice (+354% 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

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