Consumer internet businesses are redefining how people engage with the world by giving them instant connectivity and convenience. The new habits they’re cultivating are also unlocking the next leg of growth for the industry, which has gained 42.6% over the past six months compared to 11.3% for the S&P 500.

Nevertheless, investors should tread carefully as many internet companies pursue winner-take-all strategies, meaning losses can be hefty if their playbooks don’t pan out. On that note, here are two internet stocks boasting durable advantages and one that may face trouble.

Market Cap: $32.54 billion

Originally known as the first online auction site, eBay (NASDAQ:EBAY) is one of the world’s largest online marketplaces.

Why Are We Cautious About EBAY?

At $67.95 per share, eBay trades at 10x forward EV-to-EBITDA. Check out our free in-depth research report to learn more about why EBAY doesn’t pass our bar.

Market Cap: $75.04 billion

Founded in 2009 and a publicly traded company since 2017, Sea (NYSE:SE) started as a gaming platform and has since expanded to offer a variety of services such as e-commerce, digital payments, and financial services across Southeast Asia.

Why Will SE Outperform?

Sea’s stock price of $131 implies a valuation ratio of 33.1x forward EV-to-EBITDA. Is now a good time to buy? See for yourself in our in-depth research report, it’s free.

Market Cap: $42.51 billion

Founded in 2010 by Harvard Business School student Bom Kim, Coupang (NYSE:CPNG) is an e-commerce giant often referred to as the "Amazon of South Korea".

Why Are We Fans of CPNG?