As the Q2 earnings season wraps, let’s dig into this quarter’s best and worst performers in the consumer internet industry, including Airbnb (NASDAQ: ABNB) and its peers.
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 49 consumer internet stocks we track reported a satisfactory Q2. As a group, revenues beat analysts’ consensus estimates by 4.3% while next quarter’s revenue guidance was 0.5% below.
Thankfully, share prices of the companies have been resilient as they are up 5.6% on average since the latest earnings results.
Airbnb (NASDAQ: ABNB)
Founded by Brian Chesky and Joe Gebbia in their San Francisco apartment, Airbnb (NASDAQ: ABNB) is the world’s largest online marketplace for lodging, primarily homestays.
Airbnb reported revenues of $3.10 billion, up 12.7% year on year. This print exceeded analysts’ expectations by 2.1%. Overall, it was a satisfactory quarter for the company with a solid beat of analysts’ EBITDA estimates.
The market was likely pricing in the results, and the stock is flat since reporting. It currently trades at $130.28.
Is now the time to buy Airbnb? Access our full analysis of the earnings results here, it’s free.
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, outperforming analysts’ expectations by 19.9%. The business had an incredible quarter with an impressive beat of analysts’ EBITDA estimates and an impressive beat of analysts’ number of paying monthly active users estimates.
The market seems happy with the results as the stock is up 30.3% since reporting. It currently trades at $8.65.
Is now the time to buy Skillz? 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 19.4% since the results and currently trades at $304.21.
Read our full analysis of Coinbase’s results here.
Netflix (NASDAQ: NFLX)
Launched by Reed Hastings as a DVD mail rental company until its famous pivot to streaming in 2007, Netflix (NASDAQ: NFLX) is a pioneering streaming content platform.
Netflix reported revenues of $11.08 billion, up 15.9% year on year. This result was in line with analysts’ expectations. More broadly, it was a satisfactory quarter as it also recorded EPS guidance for next quarter topping analysts’ expectations but number of global streaming paid memberships in line with analysts’ estimates.
The company reported 310.5 million users, up 11.8% year on year. The stock is down 5.4% since reporting and currently trades at $1,207.
Read our full, actionable report on Netflix here, it’s free.
The RealReal (NASDAQ: REAL)
Founded by consignment store aficionado Julie Wainwright, The RealReal (NASDAQ: REAL) is an online marketplace for buying and selling secondhand luxury goods.
The RealReal reported revenues of $165.2 million, up 14% year on year. This number surpassed analysts’ expectations by 3.6%. Overall, it was a strong quarter as it also put up EBITDA guidance for next quarter exceeding analysts’ expectations and an impressive beat of analysts’ EBITDA estimates.
The company reported 1 million users, up 163% year on year. The stock is up 37.4% since reporting and currently trades at $7.60.
Read our full, actionable report on The RealReal 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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