2 Internet Stocks to Own for Decades and 1 We Turn Down

Consumer internet businesses are redefining how people engage with the world by giving them instant connectivity and convenience. Despite the tailwinds, their demand largely hinges on consumer spending habits, which investors believe are weakening. As a result, the industry has pulled back by 20% over the past six months. This drawdown is a noticeable divergence from the S&P 500’s 6.9% return.

Despite the lackluster result, a few diamonds in the rough can produce earnings growth no matter what, and we started StockStory to help you find them. With that said, 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: $503.3 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 Is SSTK Risky?

1. Customer spending has dipped by 87.9% on average as it focused on growing its requests
2. Forecasted revenue decline of 19% for the upcoming 12 months implies demand will fall off a cliff
3. Performance over the past three years shows its incremental sales were much less profitable, as its earnings per share fell by 6.3% annually

Shutterstock’s stock price of $13.67 implies a valuation ratio of 1x forward price-to-gross profit. If you’re considering SSTK for your portfolio, see our FREE research report to learn more.

Two Consumer Internet Stocks to Buy:

Netflix (NFLX)

Market Cap: $345.3 billion

Launched by Reed Hastings as a DVD mail rental company until its famous pivot to streaming in 2007, Netflix (NASDAQ: NFLX) is a pioneering streaming content platform.

Why Should You Buy NFLX?

1. Global Streaming Paid Memberships are rising, meaning the company can increase revenue without incurring additional customer acquisition costs if it can cross-sell additional products and features
2. Performance over the past three years was turbocharged by share buybacks, which enabled its earnings per share to grow faster than its revenue
3. Free cash flow margin jumped by 16.2 percentage points over the last few years, giving the company more resources to pursue growth initiatives, repurchase shares, or pay dividends

Netflix is trading at $81.70 per share, or 19.6x forward EV/EBITDA. Is now a good time to buy? Find out in our full research report, it’s free.

DoorDash (DASH)

Market Cap: $65.79 billion

Founded by Stanford students with the intent to build “the local, on-demand FedEx", DoorDash (NASDAQ:DASH) operates an on-demand food delivery platform.

Why Is DASH a Top Pick?

1. Orders have increased by an average of 22.9% annually, giving it the potential for margin-accretive growth if it can develop valuable complementary products and features
2. Expected revenue growth of 25.6% for the next year suggests its market share will rise
3. Incremental sales significantly boosted profitability as its annual earnings per share growth of 179% over the last three years outstripped its revenue performance

At $151.56 per share, DoorDash trades at 17.3x forward EV/EBITDA. Is now the time to initiate a position? See for yourself in our in-depth research report, it’s free.

Stocks We Like Even More

WHILE YOU’RE HERE: Top 9 Market-Beating Stocks. The best stocks don’t just beat the market once. They do it again. And again. Robust revenue growth, rising free cash flow, returns on capital that leave their competition in the dust. The market has already rewarded these businesses.

But our AI platform says the party isn’t over. Find out which 9 stocks made the cut this week — FREE. Get Our Top 9 Market-Beating Stocks for Free HERE.

Stocks that made our list in 2020 include now familiar names such as Nvidia (+1,326% between June 2020 and June 2025) as well as under-the-radar businesses like the once-small-cap company Comfort Systems (+782% five-year return). Find your next big winner with StockStory today.