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Investing.com -- In the competitive landscape of US internet stocks, Wolfe Research has identified several standout performers worth investor attention. These companies demonstrate strong fundamentals, innovative business models, and potential for continued growth despite market volatility. Let’s examine the top five internet stocks according to Wolfe Research’s latest analysis.
Duolingo Inc (DUOL) - Wolfe Research expects Duolingo to beat Q3 bookings estimates by 3-4% and EBITDA by low to mid-single digits. The language learning platform is anticipated to show daily active user growth in the high-30% range. Duolingo has consistently outperformed, beating Street estimates for bookings and EBITDA for 16 consecutive quarters. Despite recent underperformance compared to the S&P 500, Wolfe remains optimistic due to strong Max tier adoption, family plan growth, and new content offerings like Chess, Math, and Music courses. The company continues to significantly outperform competing language apps in key metrics.
In recent developments, Duolingo Inc. has received continued positive sentiment from analysts, with firms including Citizens JMP and Evercore ISI maintaining Outperform ratings based on factors like web-based checkout adoption and new product updates from its DuoCon event.
Match Group (MTCH) - Wolfe Research views Match Group’s recent market underperformance as overdone, with shares lagging the S&P 500 by 17 percentage points since Q2 earnings. The dating app company’s target of 175,000 Tinder net adds in Q3 appears achievable given back-to-school campaigns, revised marketing efforts, and new product initiatives targeting Gen Z users. With favorable tailwinds from foreign exchange rates, product launches, in-app fee savings, and marketing campaigns, Wolfe considers Match’s valuation of 12x FY’26 EPS and 8x FY’26 EBITDA highly reasonable.
Match Group has seen several analysts raise their price targets, with firms like Susquehanna and Wolfe Research citing early signs of improvement in its turnaround strategy and moderating headwinds at its flagship Tinder platform.
Peloton Interactive (PTON) - Despite recent underperformance (18 percentage points behind Nasdaq since August 11), Wolfe Research sees Peloton’s recent price increases for hardware and subscriptions as positive signals. The firm believes Q1 estimates are beatable due to conservative guidance and resilient demand. At 9x FY’26 EBITDA, Peloton’s valuation appears reasonable given its refreshed strategic direction and growth plan.
Peloton Interactive announced a partnership with Respin Health to study the effects of exercise on menopause and also unveiled Peloton IQ, a new AI-powered personal coaching platform that creates personalized training plans.
Bumble (BMBL) - Wolfe Research projects Bumble’s Q3 revenue to align with Street estimates while EBITDA could beat by low single digits. However, Bumble app net adds may miss expectations. The firm forecasts Q3 revenue declining 10% year-over-year with EBITDA margins expanding over 310 basis points to 33.3%. Bumble shares have underperformed the S&P 500 by 15% since August 6th earnings, but historical execution suggests at least in-line revenue performance, helped by foreign exchange tailwinds.
Bumble Inc. reported a second-quarter earnings per share miss, though revenue slightly surpassed expectations. Following the results, Goldman Sachs downgraded the company’s stock to Neutral, citing limited visibility into its turnaround.
Etsy (ETSY) - For Q3, Wolfe Research expects Etsy’s Gross Merchandise Sales and EBITDA to exceed consensus by low single digits. The firm projects Q4 guidance to at least match Street expectations, driven by improving product and marketing initiatives. Etsy has outperformed both the S&P 500 and Nasdaq by 9 and 7 percentage points respectively since July 30th earnings, partly due to its integration into OpenAI’s Operator model pilot.
Etsy announced a partnership with OpenAI, making its U.S. sellers the first to use a new Instant Checkout feature within ChatGPT. The company also revealed plans to transfer its stock listing from the Nasdaq to the New York Stock Exchange in October 2025.
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