Top 3 Internet Stocks to Buy for Potential Profit

NASDAQ: BKNG | Booking Holdings Inc. News, Ratings, and Charts

BKNG – The internet industry is well-positioned to witness significant growth amid digitization and increasing smart infrastructures. So, internet stocks Booking (BKNG), eBay (EBAY), and Tripadvisor (TRIP) might be worth owning for potential profit. Read on…

The adoption of smart city solutions and increasing digitization is boosting the internet industry. As the industry shows solid potential, fundamentally strong internet stocks Booking Holdings Inc. (BKNG), eBay Inc. (EBAY), and Tripadvisor, Inc. (TRIP) might be worth buying for potential profit.

One of the key factors propelling internet market growth is increasing urbanization and population and the adoption of smart city solutions for the management of resources. According to Fortune Business Insights, the global Internet of Things (IoT) market is projected to reach $3.35 trillion in 2030 at a CAGR of 26.1%.

In addition, government initiatives aiming at developing infrastructure are driving the growth of the wireless internet services market. With growing 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 services market is expected to grow to $921.97 billion in 2027 at a CAGR of 7%.

Let’s discuss the stocks mentioned above in detail:

Booking Holdings Inc. (BKNG)

BKNG provides travel and restaurant online reservation and related services worldwide.

Its trailing-12-month net income margin of 22.14% is 395.3% higher than the 4.47% industry average. Its trailing-12-month gross profit margin of 85.74% is 143.95% higher than the 35.15% industry average.

During the fiscal first quarter ended March 31, 2023, BKNG’s total revenue increased 14.7% year-over-year to $3.78 billion. Its net income came in at $266 million, compared to a loss of $700 million in the previous-year quarter, while its net income applicable to common stockholders per common share came in at $7, compared to negative $17.10 in the previous-year quarter.

BKNG’s revenue is expected to increase 20.4% year-over-year to $5.17 billion for the fiscal second quarter ending June 2023. Its EPS is expected to increase 51% year-over-year to $28.82 for the same quarter. Also, it has surpassed EPS estimates in each of the trailing four quarters, which is impressive.

Shares of BKNG have gained 42.5% over the past year to close the last trading session at $2,765.26.

BKNG’s POWR Ratings reflect its promising outlook. The stock has an overall rating of B, which translates to a Buy in our proprietary rating system. The POWR Ratings are calculated by considering 118 different factors, with each factor weighted to an optimal degree.

The stock has an A grade for Quality and a B in Sentiment and Momentum. It is ranked #8 out of 87 stocks in the Internet industry.

Beyond what is stated above, we’ve also rated BKNG for Growth, Value, and Stability. Get all BKNG ratings here.

eBay Inc. (EBAY)

EBAY operates marketplace platforms that connect buyers and sellers in the United States and internationally.

On May 10, EBAY announced the expansion of its Authenticity Guarantee service for trading cards in Canada.

Its trailing-12-month EBITDA margin of 28.22% is 159% higher than the 10.90% industry average. Its trailing-12-month gross profit margin of 72.60% is 106.6% higher than the 35.15% industry average.

EBAY’s net revenues rose 1.1% year-over-year to $2.51 billion in the fiscal first quarter that ended March 31, 2023. Its net income came in at $567 million, compared to a loss of $1.34 billion in the previous-year quarter, while its net income per share came in at $1.05, compared to negative $2.28 in the previous-year quarter.

Street expects EBAY’s revenue for the fiscal second quarter ending June 2023 to increase 3.1% year-over-year to $2.50 billion. Its EPS is expected to increase 0.02% year-over-year to $0.99 for the same quarter.

The stock has gained 4.9% year-to-date to close the last trading session at $43.48.

EBAY’s robust prospects are reflected in its POWR Ratings. The stock has an overall B rating, equating to a Buy in our proprietary rating system.

EBAY has an A grade for Quality and a B in Growth and Momentum. It is ranked #9 in the same industry.

Click here to see the additional POWR Ratings for EBAY (Value, Stability, and Sentiment).

Tripadvisor, Inc. (TRIP)

TRIP operates as an online travel company, primarily engages in the provision of travel guidance products and services worldwide. The company operates in three segments: Tripadvisor Core; Viator; and TheFork.

Its trailing-12-month asset turnover ratio of 0.63x is 25.9% higher than the 0.50x industry average. Its trailing-12-month gross profit margin of 92.32% is 85.5% higher than the 49.76% industry average.

TRIP’s revenues increased 41.6% year-over-year to $371 million in the first quarter that ended March 31, 2023.

TRIP’s revenue is expected to increase 13.7% year-over-year to $474.24 million for the fiscal second quarter ending June 2023. The company’s EPS for the same quarter is expected to come to $0.36. Also, it has surpassed revenue estimates in each of the trailing four quarters.

TRIP gained 14.6% over the past 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 translates to a Buy in our proprietary rating system.

TRIP also has an A grade for Quality and a B for Momentum, Value, and Growth. It is ranked #7 in the same industry.

For additional ratings for TRIP’s Stability and Sentiment, click here.

What To Do Next?

Get your hands on this special report with three low priced companies with tremendous upside potential even in today’s volatile markets:

3 Stocks to DOUBLE This Year >


BKNG shares were unchanged in premarket trading Monday. Year-to-date, BKNG has gained 37.21%, versus a 9.88% rise in the benchmark S&P 500 index during the same period.


About the Author: Nidhi Agarwal


Nidhi is passionate about the capital market and wealth management, which led her to pursue a career as an investment analyst. She holds a bachelor's degree in finance and marketing and is pursuing the CFA program. Her fundamental approach to analyzing stocks helps investors identify the best investment opportunities. More...


More Resources for the Stocks in this Article

TickerPOWR RatingIndustry RankRank in Industry
BKNGGet RatingGet RatingGet Rating
EBAYGet RatingGet RatingGet Rating
TRIPGet RatingGet RatingGet Rating

Most Popular Stories on StockNews.com


Updated 2024 Stock Market Outlook

The bull market continues to rage on with the S&P 500 (SPY) making new highs. That is the past...the question is what does the future hold? That is why 44 year investment veteran Steve Reitmeister provides this updated 2024 Stock Market Outlook to help you carve a path to outperformance the rest of the year. Read on below for the full story...

3 Auto Stocks to Consider Over TSLA in April

Tesla (TSLA) reported a decline in deliveries in the first quarter, and Wall Street expects the company to deliver fewer vehicles than last year. Furthermore, rising competition, slowing EV sales, and stretched valuation make TSLA unattractive from an investment standpoint. Considering these factors, investors could consider buying fundamentally strong auto stocks Blue Bird (BLBD), Rolls-Royce Holdings (RYCEY), and Stellantis (STLA) over Tesla (TSLA). Read more...

3 Top-Rated Tech Stock Buys for Value in April

The technology sector is undergoing a notable surge, propelled by increasing digitalization endeavors among businesses and governmental support for technological progress. So, fundamentally sound tech stocks Box Inc. (BOX), Teradata (TDC), and Materialise (MTLS), which seem pretty undervalued, might be ideal buys this month. Continue reading...

Top Software Stocks at the Forefront of Market Gains

The software industry's prospects appear bright due to increasing investments in digital transformation, high demand for advanced software services from various sectors, and the integration of emerging technologies such as generative AI. Therefore, investors could consider buying quality software stocks Autodesk (ADSK), DocuSign (DOCU), and Pegasystems (PEGA) for solid gains. Read more...

Does the Stock Market Have Indigestion?

The easy gains have already rolled in for the S&P 500 (SPY) to new heights. However, signs point to stocks entering a stage of “digestion”. What does that mean? And what does it tell us about investing in stocks the rest of the year? Steve Reitmeister shares his time views in this new market commentary including a preview of this top stocks to outperform. Get the full story below...

Read More Stories

More Booking Holdings Inc. (BKNG) News View All

Event/Date Symbol News Detail Start Price End Price Change POWR Rating
Loading, please wait...
View All BKNG News