Two Promising Internet Content Stocks to Consider in a Tough Market

The Zacks Internet – Content industry, which includes companies like Opera Limited (OPRA) and Similarweb (SMWB), is facing challenges from declining advertising spending due to macroeconomic pressures. The industry has underperformed over the past year, with a drop of 11.6%, contrasting with a 4.8% increase in the S&P 500 sector. This downturn is reflected in the Zacks Industry Rank #145, placing it in the bottom 41% of over 250 industries, alongside a negative earnings outlook as the consensus estimate for 2026 earnings has decreased by 2% since January 31, 2026.

Despite these challenges, Opera and Similarweb are leveraging opportunities in digital content expansion, particularly in social media, connected TV, and cloud applications. Opera has experienced over 20% revenue growth, attributing its success to AI-driven monetization strategies, while Similarweb is capitalizing on the data needs of the AI ecosystem. However, regulatory pressures, especially from China and the European Union, may impact future growth prospects and advertising revenue, which is crucial for sustaining industry players’ financial health.