Two Internet Content Stocks to Monitor in a Tough Market

The Zacks Internet – Content industry is grappling with declining ad spending, heavily influenced by ongoing geopolitical tensions, including the Russia-Ukraine conflict and strife in the Middle East. The industry’s outlook is further dampened by persistent inflation and higher interest rates, which have led to a negative earnings outlook. As of now, the Zacks Industry Rank for this sector is #194 out of more than 250, indicating it stands in the bottom 21% of industries, with a notable underperformance against the broader S&P 500, which has appreciated by 25.3% over the last year compared to the industry’s 6.1% return.

Companies like Yelp and Opera Limited are currently identifying growth opportunities by leveraging digital offerings and enhancing their presence on social media and digital platforms. Yelp’s earnings estimate for 2025 has decreased to $2.10 per share, and the company’s shares have fallen 20.9% year-to-date. Conversely, Opera, which reported a year-on-year growth in search revenues of 8%, has maintained a stable user base of 293 million but has seen its shares plunge 17.1% this year, with an earnings estimate steady at $1.18 per share.

As the industry faces increasing regulations, particularly in China and the European Union—like the implementation of the General Data Protection Regulation and the Digital Markets Act—companies may see further challenges in maintaining revenue streams, especially from advertising, which remains a primary source of income in this sector.