Internet companies are among the most profitable stocks in the world. Big name brands like Facebook (FB), Google (GOOG), Twitter (TWTR), Yahoo (YHOO), and J2 Global Communications Inc (JCOM) dominate the Nasdaq Index and the NYSE and there are plenty of top-performing stocks to choose from. Investors are naturally drawn to these stocks owing to their lucrative yields and rapid growth rates. There are many Internet companies to invest in. Below are examples of what to look for when investing in Internet companies.
Facebook (FB) has a market cap of $187.78 billion and a price/earnings ratio of 78.49. The stock opened at $38.23 on May 18th 2012 and has virtually doubled in value to its present price of over $72 per share. The stock surged in value after the recession began lifting in mid-2013 and has remained largely bullish for well over a year. Investment possibilities for Facebook (FB) remain solid given sound fundamentals and strong performance.
Google (GOOG) is a power player in Internet stocks and it has grown rapidly since the IPO was listed on 19 August 2004. The IPO for Google (GOOG) pegged the stock at $85 and in the 10 years since, the stock has increased in value over 10 times. The 650% return on Google is largely unheard of in such a short period of time for such a prominent global tech stock. Google Stock (GOOG) dipped somewhat during 2008/2009 but bounced back solidly to begin its inevitable climb to over $568. The market cap of Google (GOOG) is $388.24 billion and the price/earnings ratio is 28.68.The stock is trading at record highs but strong upside potential remains.
Investing in Twitter (TWTR)
Twitter (TWTR) is the latest tech stock to list. Twitter (TWTR) began trading on the 7 November 2013 when it sold for $26 per share. By the 3rd January 2014, Twitter hit a high of $69 but it has been largely downhill from there. The stock has steadily declined to its listing price and is now on an upward march. The stock hit a low point on the 23 May 2014 when it was trading at $30.50 per share. Since May, the stock has managed to claw back some ground and is now trading at over $44 per share. The company has a market cap of $25.92 billion.
Yahoo (YHOO) stocks have been on the market for over 18 years. The shares started trading at $13 per share on April 12, 1996. During the dotcom bubble, Yahoo (YHOO) reached $118.75 per share before plummeting to $8.11. Since 2001, the stock price has been steadily consolidating. Investors have enjoyed solid performance from the stock in the past 2 years and Yahoo (YHOO) is now trading at over $35. Since this company owns a 23% stake in Alibaba (launching in Q3 2014) investors are expecting the share price to surge.