Quarterly earnings results are a good time to check in on a company’s progress, especially compared to its peers in the same sector. Today we are looking at Skillz (NYSE: SKLZ) and the best and worst performers in the consumer internet industry.
The ways people shop, transport, communicate, learn and play are undergoing a tremendous, technology-enabled change. Consumer internet companies are playing a key role in lives being transformed, simplified and made more accessible.
The 48 consumer internet stocks we track reported a satisfactory Q2. As a group, revenues beat analysts’ consensus estimates by 4.4% while next quarter’s revenue guidance was 0.5% below.
Thankfully, share prices of the companies have been resilient as they are up 5.9% on average since the latest earnings results.
Best Q2: Skillz (NYSE: SKLZ)
Taking a new twist at video gaming, Skillz (NYSE: SKLZ) offers developers a platform to create and distribute mobile games where players can pay fees to compete for cash prizes.
Skillz reported revenues of $27.37 million, up 8.2% year on year. This print exceeded analysts’ expectations by 19.9%. Overall, it was an incredible quarter for the company with a solid beat of analysts’ EBITDA estimates.
Interestingly, the stock is up 34% since reporting and currently trades at $8.90.
Is now the time to buy Skillz? Access our full analysis of the earnings results here, it’s free.
Shutterstock (NYSE: SSTK)
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.
Shutterstock reported revenues of $267 million, up 21.3% year on year, outperforming analysts’ expectations by 7.5%. The business had a stunning quarter with an impressive beat of analysts’ EBITDA estimates.
The market seems happy with the results as the stock is up 8.2% since reporting. It currently trades at $21.44.
Is now the time to buy Shutterstock? Access our full analysis of the earnings results here, it’s free.
Weakest Q2: Coinbase (NASDAQ: COIN)
Widely regarded as the face of crypto, Coinbase (NASDAQ: COIN) is a blockchain infrastructure company updating the financial system with its trading, staking, stablecoin, and other payment solutions.
Coinbase reported revenues of $1.50 billion, up 3.3% year on year, falling short of analysts’ expectations by 4.3%. It was a disappointing quarter as it posted a significant miss of analysts’ number of monthly transacting users estimates and a significant miss of analysts’ EBITDA estimates.
Coinbase delivered the weakest performance against analyst estimates in the group. The company reported 8.7 million monthly active users, up 6.1% year on year. As expected, the stock is down 15.8% since the results and currently trades at $317.80.
Read our full analysis of Coinbase’s results here.
Alphabet (NASDAQ: GOOGL)
Started by Stanford students Larry Page and Sergey Brin in a Menlo Park garage, Alphabet (NASDAQ: GOOGL) is the parent company of the eponymous Google Search engine, Google Cloud Platform, and YouTube.
Alphabet reported revenues of $96.43 billion, up 13.8% year on year. This result surpassed analysts’ expectations by 2.6%. It was a very strong quarter as it put up a beat of analysts’ revenue estimates. Also, Google Cloud Platform, Google Search, and YouTube all beat.
The stock is up 7.1% since reporting and currently trades at $203.93.
Read our full, actionable report on Alphabet here, it’s free.
Sea (NYSE: SE)
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.
Sea reported revenues of $5.26 billion, up 31.6% year on year. This print topped analysts’ expectations by 5%. Overall, it was an exceptional quarter as it also recorded a solid beat of analysts’ EBITDA estimates.
The company reported 61.8 million users, up 17.7% year on year. The stock is up 21.1% since reporting and currently trades at $177.30.
Read our full, actionable report on Sea here, it’s free.
Market Update
The Fed’s interest rate hikes throughout 2022 and 2023 have successfully cooled post-pandemic inflation, bringing it closer to the 2% target. Inflationary pressures have eased without tipping the economy into a recession, suggesting a soft landing. This stability, paired with recent rate cuts (0.5% in September 2024 and 0.25% in November 2024), fueled a strong year for the stock market in 2024. The markets surged further after Donald Trump’s presidential victory in November, with major indices reaching record highs in the days following the election. Still, questions remain about the direction of economic policy, as potential tariffs and corporate tax changes add uncertainty for 2025.
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