The Internet industry is well positioned to experience significant growth in the face of digitization and increasing intelligent infrastructure. As such, internet stocks Booking (BKNG), eBay (EBAY), and Tripadvisor (TRIP) could be worth owning for potential gains. Continue reading.
The introduction of smart city solutions and increasing digitization are spurring on the Internet industry. With the industry showing solid potential, fundamentally strong internet stocks are Booking Holdings Inc. (BKNG), eBay Inc. (EBAY) and Tripadvisor, Inc. (TRIP) might be worth buying for a potential profit.
One of the key factors driving the growth of the internet market is the increasing urbanization and population, as well as the adoption of smart city resource management solutions. According to Fortune Business Insights, the global Internet of Things (IoT) market is expected to reach $3.35 trillion in 2030 CAGR of 26.1%.
Additionally, government infrastructure development initiatives are driving the growth of the wireless internet service market. With more and more government initiatives and environmental campaigns taking center stage, technology providers and specialists have actively started simulating creative solutions based on technical modules for the design and growth of urban infrastructure in several regions.
The global wireless internet service market is expected to reach US$921.97 billion in 2027 CAGR of 7%.
Let’s discuss the above stocks in detail:
Booking Holdings Inc. (BKNG)
BKNG provides online travel and restaurant reservations and related services worldwide.
It’s the last 12 months net profit margin of 22.14% is 395.3% higher than the industry average of 4.47%. The company’s TTM gross profit margin of 85.74% is 143.95% above the industry average of 35.15%.
For the fiscal first quarter ended March 31, 2023, BKNG’s total revenue increased 14.7% year over year to $3.78 billion. Net income was $266 million compared to a loss of $700 million in the year-ago quarter, while net income attributable to common shareholders per common share was $7 compared to a negative $17.10 in the year-ago quarter .
BKNG’s revenue is expected to grow 20.4% year over year to $5.17 billion for the second fiscal quarter ended June 2023. Earnings per share for the same quarter are expected to rise 51% year over year to $28.82. Also, the company has beaten EPS estimates for the past four quarters, which is impressive.
Shares of BKNG are up 42.5% over the past year to close the last trading session at $2,765.26.
BKNG’s POWR ratings reflect the promising prospects. The stock has an overall rating of B, which equates to a Buy in our proprietary rating system. The POWR ratings are calculated considering 118 different factors, with each factor being optimally weighted.
The stock has an A rating for quality and a B rating for sentiment and momentum. It ranks 8th out of 87 stocks Internet Industry.
Beyond the above, we also rated BKNG for growth, value, and stability. Get all BKNG ratings Here.
eBay Inc (EBAY)
EBAY operates marketplace platforms that bring together buyers and sellers in the United States and internationally.
On May 10th, EBAY announced the expansion of its trading card authenticity service in Canada.
The company’s trailing 12-month EBITDA margin is 28.22%, up 159% from the industry average of 10.90%. The company’s trailing 12-month gross profit margin is 72.60%, up 106.6% from the industry average of 35.15%.
EBAY net sales increased 1.1% year over year to $2.51 billion for the first fiscal quarter ended March 31, 2023. Net income was $567 million compared to a loss of $1.34 billion in the year-ago quarter. Net income per share was $1.05 compared to minus $2.28 in the year-ago quarter .
Street expects EBAY’s revenue to grow 3.1% year over year to $2.50 billion for the fiscal second quarter ended June 2023. Earnings per share for the same quarter are expected to rise 0.02% year over year to $0.99.
The stock is up 4.9% year-to-date to close the last trading session at $43.48.
EBAY’s robust outlook is reflected in its POWR ratings. The stock has an overall rating of B, which equates to a Buy in our proprietary rating system.
EBAY has an A grade for quality and a B grade for growth and momentum. It ranks 9th in the same industry.
Click here to view the additional POWR ratings for EBAY (Value, Stability and Sentiment).
Tripadvisor, Inc. (TRIP)
TRIP is an online travel company and principally engaged in the provision of travel advisory products and services worldwide. The Company operates through three segments: Tripadvisor Core; viator; and TheFork.
The asset turnover ratio of 0.63x over the trailing 12 months is 25.9% above the industry average of 0.50x. The company’s trailing 12-month gross profit margin is 92.32%, up 85.5% from the industry average of 49.76%.
TRIP revenue increased 41.6% year over year to $371 million for the first quarter ended March 31, 2023.
TRIP revenue is expected to grow 13.7% year-on-year to $474.24 million for the second fiscal quarter ended June 2023. The company’s earnings per share for the same quarter are expected to be $0.36. In addition, sales estimates were exceeded in each of the last four quarters.
TRIP is up 14.6% over the last month to close its last trading session at $15.88.
TRIP’s POWR ratings reflect its robust outlook. The stock has an overall rating of B, which equates to a Buy in our proprietary rating system.
TRIP also has an A rating for quality and a B rating for dynamism, value and growth. It is ranked 7th in the same industry.
For more reviews on TRIP’s stability and mood, see Click here.
What do you do next?
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BKNG shares were flat in premarket trading on Monday. Year-to-date, BKNG is up 37.21%, while the benchmark S&P 500 index is up 9.88% over the same period.
About the Author: Nidhi Agarwal
Nidhi has a passion for the capital markets and wealth management which led her to pursue a career as an investment analyst. She has a bachelor’s degree in finance and marketing and is completing the CFA program. Their fundamental approach to analyzing stocks helps investors identify the best investment opportunities.
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