After a Strong June, Internet Firms Face Tough Comps, Says Analyst

Internet stocks had strong June results, rising 6.7% vs. 2.2% for the S&P 500, reversing a trend for the first five months of 2021, Canaccord Genuity wrote investors Thursday. Many internet companies will begin to face difficult 2020 comparables as they come up against COVID-fueled results from 2020, though two-year stacked revenue increases suggest growth across the category “remains strong and that the pandemic-driven acceleration of digital adoption is likely to persist,” said analyst Maria Ripps. Digital advertising momentum is expected to continue, while e-commerce should have “robust growth.” With millions of new customers acquired over the past year during the COVID-19 pandemic, e-commerce companies are focusing on retaining the most recent customers amid the reopening, said the analyst.