The rapid rise of the Internet, fueled by government support and global digitization efforts, has revolutionized entire industries. From e-commerce to entertainment to tourism, online activity is booming, presenting a wealth of growth opportunities.
As digital platforms become essential, strong internet stocks Booking Holdings (BKNG), eBay (EBAY), Expedia Group (EXPE), and Amazon.com (AMZN) are ideal for aiming for huge profits. Possible buyer. .
Internet usage is expanding around the world and shows no signs of slowing down. With the proliferation of the Internet, more individuals are immersed in online activities, resulting in a proliferation of e-commerce, social media networking, online banking and financial management, streaming services, remote work and collaboration tools, and more.
As of 2023, 79% of smartphone users used their mobile device to make purchases. The global e-commerce market is estimated at $8.8 trillion and is projected to grow to $8.8 trillion by 2029 at a CAGR of 15.8%. Furthermore, the US online retail market is expected to exceed $1 trillion by 2029.
Additionally, government efforts to expand access to the internet are also boosting the industry. The BEAD program commits more than $42 billion to improve high-speed internet access nationwide under the federal Infrastructure Investment and Jobs Act (IIJA).
In addition, the Internet travel industry is growing due to travelers’ preference for reliable transportation, personalized service, and group travel, especially among young people. The sector is further driven by the growing influence of social media, increasing demand for authentic experiences, and digital innovation.
The global online travel booking services market is projected to grow at a CAGR of 9% until 2030.
With these positive trends in mind, let’s dig into the basics of four Internet stocks, starting with our fourth choice.
Stock #4: Booking Holdings, Inc. (BKNG)
BKNG is a global leader in travel and dining reservations and operates Booking.com, Rentalcars.com and Priceline. With a market capitalization of $124.65 billion, it is transforming the way accommodation, car rentals, and travel packages are booked.
On March 13, BKNG collaborated with Peerspace to introduce special hotel and car rental discounts for event organizers and attendees. This partnership will enhance the event planning experience by offering customers who book venues with Peerspace discounted accommodations through his Booking.com.
The partnership simplifies event planning and travel arrangements by providing access to unique accommodations around the world, ensuring a seamless experience for both organizers and attendees.
On February 13, BKNG’s Priceline introduced AI-powered trip intelligence capabilities in its winter 2024 product release, enhancing the travel experience with more than 30 new tools. Priceline has been the leader in online travel for 25 years.
Priceline aims to leverage cutting-edge technology to streamline travel planning and booking and meet consumers’ evolving demands for smarter, faster solutions.
Both developments should benefit BKNG by enhancing its reputation and attracting more customers.
Additionally, BKNG announced in February that it would pay a quarterly cash dividend of $8.75 per share on March 28, 2024. The company pays an annual dividend of $8.75, giving it a yield of 0.96% at current market prices.
The company beat consensus estimates for revenue and EPS for the fiscal fourth quarter ending December 2023. His BKNG’s total revenue for the fourth quarter increased 18.2% year over year to $4.78 billion. Adjusted EBITDA increased 18% year over year to $1.46 billion.
Non-GAAP net income and non-GAAP net income per common share applicable to common stockholders for the quarter were $1.13 billion and $32, respectively, an increase of 17.9% and 29.3%, respectively, from the prior year period.
Street expects BKNG’s revenue and EPS to increase 12.4% and 22.5% year over year to $4.25 billion and $14.21, respectively, for the fiscal first quarter ending March 2024. . The company has surpassed consensus revenue and EPS estimates in each of his four subsequent quarters, which is noteworthy.
The stock price has increased 41.9% over the past year, closing at $3,647.81.
BKNG’s POWR rating reflects its promising outlook. The stock has an overall rating of “B”, which equates to a “buy” according to our proprietary rating system. POWR ratings are calculated by considering 118 different factors, with each factor weighted to the best degree.
BKNG quality is A grade. The company ranks #5 out of 52 stocks in the Internet industry. This industry is rated B.
In addition to the above, we also evaluated stocks for growth, value, sentiment, momentum, and stability. All BKNG ratings are available here.
Inventory #3: eBay Inc. (ebay)
EBAY has a market capitalization of $26.94 billion and is a global commerce hub. The company connects buyers and sellers around the world through its online marketplace and mobile app, allowing them to easily list, buy and sell a variety of products.
In the fourth quarter of the fiscal year, EBAY opened its newest certification center in Japan. The Tokyo-based hub provides an additional layer of trust, allowing the company to authenticate luxury goods on a global scale. In the same quarter, the company also released a new AI-powered generative social caption generator that makes social sharing easier for sellers.
On February 27th, EBAY held a “Catch 151” auction. This is a one-day Pokemon Day event featuring ultra-rare cards and collectibles starting at $1.51.
EBAY has been a top destination for Pokemon inventory since 1996 and has seen a surge in searches in recent years, reflecting the series’ enduring popularity.
The company’s annual dividend is $1.08, yielding 2.08% at prevailing prices, which is higher than the four-year average dividend yield of 1.59%. The company has increased its dividend at a CAGR of 48.8% over the past five years.
EBAY exceeded consensus revenue and EPS estimates during the fiscal fourth quarter ended December 31, 2023. Net revenue increased 2.1% year over year to $2.56 billion. Gross profit increased 1.3% year over year to $1.8 billion. Additionally, non-GAAP net income from continuing operations was $560 million, or $1.07 per share.
EBAY’s EPS and revenue for the quarter ending March 2024 are expected to increase slightly by 8% year over year to $1.2 billion and $2.53 billion, respectively. It beat consensus EPS and revenue estimates in each of the subsequent four quarters.
Shares have increased 18.7% over the past month, closing at $52.
EBAY’s POWR rating reflects that rosy outlook. The stock has an overall rating of B, which equates to a Buy according to our proprietary rating system.
We have an A grade for quality and a B grade for momentum. It ranks 19th in the industry.
In addition to the POWR Rating above, you can find EBAY’s Growth, Value, Stability and Sentiment ratings here.
Stock #2: Expedia Group, Inc. (Expe)
EXPE is a leading online travel company, boasting popular brands such as Expedia, Hotels.com, Vrbo, and Trivago. Market capitalization is $18.59 billion.
On November 2, 2023, EXPE announced $5 billion in new stock repurchase authorizations, supplementing the company’s existing stock repurchase authorizations. In fiscal year 2023, EXPE repurchased more than 19 million shares of his stock for his $2 billion, a record high.
The company exceeded market expectations in both revenue and EPS for the fiscal fourth quarter ended December 31, 2023. EXPE had revenue of $2.89 billion, an increase of 10.3% year over year. Total bookings increased 5.7% year over year to $21.67 billion. Adjusted EBITDA increased 18.5% year over year to $532 million. Additionally, adjusted EPS increased 36.5% year over year to $1.72.
EXPE’s revenue and EPS are expected to increase 9.3% and 27.8% year over year to $14.03 billion and $12.39 in fiscal 2024, respectively.
The stock price last closed at $136.39, up 41% over the past year and 33.8% over the past six months.
EXPE’s POWR Rating reflects this positive outlook. The stock has an overall rating of B, which equates to a Buy according to our proprietary rating system.
EXPE has an A grade for quality and a B grade for growth and value. It ranks 8th in the industry.
Click here to access additional momentum, stability, and sentiment ratings for EXPE.
Inventory #1: Amazon.com, Inc. (AMZN)
AMZN dominates global retail sales with a market capitalization of $1.85 trillion. It operates through three segments: North America, International, and Amazon Web Services (AWS), offering consumer products and subscriptions both online and in brick-and-mortar stores around the world.
On March 18, Amazon’s AWS announced that it is partnering with NVIDIA Corp. (NVDA) to bring the latest NVIDIA Blackwell GPU platform to its services. This collaboration will bring GB200 Grace Blackwell superchips and B100 Tensor Core GPUs to his AWS to power generative artificial intelligence (AI) capabilities.
By leveraging AWS’ advanced infrastructure and NVIDIA’s cutting-edge GPU technology, customers now enjoy a faster, scalable, and cost-effective solution for real-time inference on large language models. became.
Additionally, Blink, an AMZN company that provides innovative and easy-to-use smart home security devices, announced on March 14th the next generation of compact cameras designed for both indoor and outdoor use with the new Blink Weather Resistant. Introducing Blink Mini 2. power adapter.
Mini 2 features a built-in LED spotlight for improved image quality, a wider field of view, and color night vision. It is powered by Blink’s custom chip and supports smart notifications including people detection with separate subscription plans.
These partnerships and product advances will help improve AMZN’s competitiveness in the rapidly growing Internet space.
AMZN impressively beat consensus EPS and revenue estimates for the fourth quarter ended December 31, 2023. Total net sales increased 13.9% year over year to $691.96 billion. The company’s operating profit increased 382.6% year-on-year to $13.21 billion. Furthermore, the company’s net income and EPS were $10.62 billion and $1, representing an increase of 3721.6% and 3233.3%, respectively, from the same period last year.
Total assets were $462.67 billion as of December 31, 2022, and $527.85 billion as of December 31, 2023.
The company expects net sales to be in the range of $138 billion to $143.5 billion for the first quarter ending March 2024, an increase of 8% to 13% compared to the first quarter of 2023. corresponds to growth. Operating income is expected to fall in the range of $8 billion to $12 billion.
Analysts expect AMZN’s EPS and revenue to increase 173.1% YoY and 11.9% to $142.54 billion in the first quarter of the fiscal year ending March 2024. Additionally, the company beat consensus revenue and EPS estimates for three companies. Subsequent quarters he had 4 quarters, which is noteworthy.
Shares have soared 77.1% over the past year, closing at $178.15. It has risen 37.8% in the past six months.
AMZN’s POWR Rating reflects its positive outlook. The stock has an overall rating of B, which equates to a “buy” according to our proprietary rating system.
The stock has an ‘A’ grade for growth potential and sentiment, and a ‘B’ grade for momentum and quality. Ranked 5th in the industry.
Click here to see additional POWR Ratings for AMZN Value and Stability.
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AMZN stock was trading Friday afternoon at $178.65 per share, up $0.50, or 0.28%. Year-to-date, AMZN has gained 17.58% while the benchmark S&P 500 index has gained 10.13% during the same period.
About the author: Kritika Sarma
An interest in risky financial products and a passion for writing led Kritika to become an analyst and financial journalist. She earned a Bachelor’s degree in Commerce and is currently enrolled in the CFA program. She aims to help investors identify untapped investment opportunities with her fundamental approach. more…
