Internet_ Where Are We Trading Now_ Through the Volatile Market

Summary of Conference Call Notes Industry Overview - The conference call focuses on the Internet industry in North America - The overall performance of internet stocks declined by 4% last week, with the S&P 500 (SPX) and Nasdaq 100 (NDX) both down 3% [1][2] Key Company Performances - Amazon (AMZN): Decreased by 6%, trading at $199.25** with a market cap of **$2,146.1 billion and an EV/Revenue of 3.0x for 2025E [5] - Alphabet (GOOGL): Increased by 2%, trading at $173.86** with a market cap of **$2,146.8 billion and an EV/Revenue of 5.2x for 2025E [5] - Meta (META): Decreased by 6%, trading at $625.66** with a market cap of **$1,626.1 billion and an EV/Revenue of 8.3x for 2025E [5] - DoorDash (DASH): Decreased by 10%, trading at $178.08** with a market cap of **$82.8 billion [5] - Roblox (RBLX): Decreased by 10%, trading at $57.17** with a market cap of **$41.8 billion [5] - eBay (EBAY): Increased by 9%, trading at $70.51** with a market cap of **$34.2 billion [5] Valuation Metrics - AMZN/GOOGL/META are trading at 26x/17x/22x their 2026 EPS, reflecting declines of 21%/-15%/-3% compared to trailing twelve months (TTM) averages [1][2] - The NTM EV/EBITDA multiples for AMZN, GOOGL, and META are 12.5x, 11.6x, and 13.4x, respectively, which are -9% and -11% lower than their 2-year and 3-year averages [6] Market Sentiment - Broader tariff concerns are impacting investor sentiment, contributing to the decline in internet stocks [1][2] - The Digital Media sector shows a median increase of 39% in EV/EBITDA multiples when treating stock-based compensation (SBC) as cash [11] Additional Insights - The eCommerce/Marketplace segment shows a median increase of 21% in EV/EBITDA multiples when treating SBC as cash [13] - The Gaming/Mobile App sector also reflects a median increase of 22% in EV/EBITDA multiples under the same conditions [14] - The Travel/Shared Economy sector shows a median increase of 41% in EV/EBITDA multiples when treating SBC as cash [18] Conclusion - The internet industry in North America is currently facing volatility, with significant declines in major companies' stock prices due to external economic factors. Valuation metrics indicate a cautious outlook, with potential for recovery if market conditions stabilize.