An increasing reliance on advanced technologies, social media platforms, and search engines has been driving the growth of companies that operate in this space. In addition, continuing innovation and the increasing application of internet-based solutions in most industries should help the internet services industry keep growing. We think this bodes well for fundamentally sound internet stocks Alphabet (NASDAQ:GOOGL), Facebook (NASDAQ:FB), Yelp (NYSE:YELP), and Groupon (NASDAQ:GRPN). Read on.With ongoing digitalization, the dependency on the internet services industry is increasing. According to a Broadband Search report, 63.2% of the world’s population uses the internet.
The rising dependence of governments, businesses, and individuals on internet-based services should drive the industry’s growth. The global internet service market is expected to reach $632.4 billion by 2027, registering a 5% CAGR. Furthermore, the growing popularity of the Internet of Things (IoT) in industries that include IT, education, banking, and healthcare is expected to propel the demand for services offered by internet companies.
Therefore, we think it could be wise to bet on quality internet stocks Alphabet Inc. (GOOGL), Facebook, Inc. (FB), Yelp Inc. (YELP), and Groupon, Inc. (GRPN). They are each expected to deliver substantial returns in the near term based on their consistent innovations, diverse portfolios of products, and strong sales growth.