In this piece, we’ll take a look at 12 cheap internet stocks to buy now. For more internet stock, go to 5 Cheap Internet Stocks to Buy Now.
The world we live in today is very different than it was just a couple of decades ago. Do you want a lift? Use your smartphone. Want to order food? Again, your smartphone is right there. Bored and want to watch Netflix? Guess which gadget will help you once again. However, the smartphone wouldn’t have half the functionality it has today if it weren’t for the internet. The project, initially initiated by the US military, is now a global reality and its impacts are so profound that even the United Nations has adopted a non-binding resolution deeming Internet access a human right. This definition is based on the human right to free speech and access to the resolution, but the resolution was opposed by some countries such as Russia, Saudi Arabia, India and China.
At the same time, the Internet has also provided us with multibillion-dollar companies that rely on it as a major component of their business model. The biggest example of this is the rise of Amazon.com, Inc. (NASDAQ: AMZN), which is one of the largest e-commerce retailers in the world and whose latest market cap stands at $996 billion. Another mega corporation that owes its existence to everyone’s favorite media and entertainment medium is Meta Platforms, Inc. (NASDAQ:META). Finally, any mention of Internet companies is incomplete without Google, whose parent company Alphabet Inc. (NASDAQ:GOOG) is the largest in our short set of examples with an absolutely massive $1.2 trillion market cap.
But how big or what is the “internet industry” really? This is a tough question that is bound to leave you scratching your head, because after all, if it weren’t for the internet, Uber Technologies, Inc. (NYSE:UBER) wouldn’t exist either. So does this primary dependence on the internet make Uber an internet company? Or is it simply a carrier service provider and telecommunications company like Verizon Communications Inc. (NYSE:VZ) that actually provide everyday users with Internet coverage are the real Internet companies? We think they are both, and it’s an important distinction to make as you’ll find below.
The distinction is important because it allows us to appraise the true value of companies in this elusive sector of the internet as it has several sub-segments with massive valuations. For example, consider the video-on-demand industry dominated by Netflix, Inc. (NASDAQ:NFLX). According to a research report by Fortune Business Insights, this industry was worth $69.5 billion in 2021 and is projected to grow via a 17.6% compound annual growth rate (CAGR) through 2029 to around $257 billion. dollars by the end of the forecast period. Another estimate, this time for the transportation-as-a-service (TaaS) industry, which mostly consists of companies like Uber, suggests that this industry presents a staggering $8 trillion market opportunity thanks to its several constituent divisions like micro mobility. Yet while the TaaS industry gifts an $8 trillion opportunity, the global e-commerce industry has already passed the lucrative trillion-dollar valuation, with a research report outlining that this industry was worth $2.6 trillion in 2021, will have grown to to $3 trillion in 2022 and from then through 2026 will demonstrate a CAGR of 12% for a final value of $4.79 trillion.
Finally, even though it has disrupted human existence, the Internet still has something in store for us. This is courtesy of both 5G telecoms (for 5G stock, check out 13 best 5G stocks to buy) and satellite coverage (for more information on space, go to 11 best space stocks to invest in) – both have only recently started to accelerate and are expected to have massive valuation. For example, the global satellite Internet market is estimated to grow at a staggering CAGR of 20.4% between 2021 and 2030 and have an eventual value of $18.5 billion according to Allied Market Research and according to estimates by investment bank Morgan Stanley, the sector will grow to account for at least 50 percent of total growth in the global space economy by 2040. For reference, the bank believes the space sector could exceed $1 trillion by that date.
As for 5G, here’s what Verizon Communications Inc. (NYSE:VZ) Chief Executive Officer, Mr. Hans Vestberg, said during the company’s latest analyst call:
Our engineers have the best track record for designing and building networks that produce the best experience. Our network will continue to evolve with a relentless commitment to quality and reliability, adding capacity where needed and filling service gaps where they exist even as capital intensity decreases in the coming years. In the move to 5G, we rapidly expanded our C-band spectrum with the most aggressive rollout plan in our company’s history. We are tracking 200 million POPs this quarter and are ahead of schedule to reach a projected 250 million POPs by the end of 2024. C-band propagation is very similar to AWS and PCS spectrum, covering over 300 million POPs Today. This gives us a clear path to scale C-band quickly and efficiently, even in the 330 markets where we expect to gain full access to C-band spectrum by the end of the year.
With those details in mind, it’s time to take a look at some budget Internet stocks, with the top picks being VEON Ltd. (NASDAQ:VEON), Magyar Telekom Tvkzlsi Nyilvnosan Mkd Rszvnytrsasg (OTCMKTS:MYTAY), and KT Corporation (NYSE: KT).
Pixabay/Public Domain
Our methodology
To pick cheap internet stocks, we cast a wide net for our piece. This included identifying software companies, telecommunications companies, information technology companies, and others, and then analyzing their business model to assess their relevance to the Internet. Then, the final picks were ranked by their P/E ratios, and the companies with the lowest ratios are listed here.
12 cheap internet stocks to buy now
12. Telekom Austria AG (OTCMKTS:TKAGY)
Most recent P/E ratio: 8.41
Telekom Austria AG (OTCMKTS:TKAGY) is an Austrian corporation headquartered in Vienna, Austria. It is a diversified internet company with operations in Serbia, Croatia, Slovenia and other countries. Telekom Austria AG (OTCMKTS:TKAGY) products and services include fixed-line Internet, Internet Protocol television coverage, mobile commerce, connected smart home devices and a mobile payment platform.
Together with Magyar Telekom Tvkzlsi Nyilvnosan Mkd Rszvnytrsasg (OTCMKTS:MYTAY), VEON Ltd. (NASDAQ:VEON), and KT Corporation (NYSE:KT), Telekom Austria AG (OTCMKTS:TKAGY) is an affordable Internet stock.
11. Yalla Group Limited (NYSE:YALA)
Most recent P/E ratio: 8.23
Yalla Group Limited (NYSE:YALA) is a social networking company headquartered in Dubai, United Arab Emirates. Its social networking platform allows users to play video games, buy and sell virtual items, and chat with each other. As of December 2022, Yalla Group Limited (NYSE:YALA) had 32 million average users and 12.4 million paying users on its platform.
By the end of the December 2022 quarter, four of the 943 hedge funds interviewed by Insider Monkey had purchased shares in Yalla Group Limited (NYSE:YALA). The company’s largest investor is Jim Simons’ Renaissance Technologies, which owns 611,000 shares worth $2 million.
10. APT Satellite Holdings Limited (OTCMKTS:ASEJF)
Most recent P/E ratio: 8.03
APT Satellite Holdings Limited (OTCMKTS:ASEJF) is a Hong Kong based company with headquarters in Tai Po, Hong Kong. The company provides Internet Protocol management services to other companies through its satellite constellation. APT Satellite Holdings Limited’s (OTCMKTS:ASEJF) full-year results saw the company grow its revenues by 1.8% annually, but struggle with inflation as its profit margin fell to 25% and net profit decreased by 12% annually.
9.Verizon Communications Inc. (NYSE:VZ)
Most recent P/E ratio: 7.51
Verizon Communications Inc. (NYSE:VZ) is an American company that provides consumers with fixed and wireless broadband and mobile Internet. Furthermore, it also provides networking, IoT and broadband data services to businesses. The company is headquartered in New York City, New York.
Insider Monkey’s study of hedge funds 943 for the fourth quarter of last year found that 56 held a stake in Verizon Communications Inc. (NYSE:VZ). The company’s largest investor is Ric Dillon’s Diamond Hill Capital, which owns 6.7 million shares worth $266 million.
8. Altice USA, Inc. (NYSE:ATUS)
Most recent P/E ratio: 7.44
Altice USA, Inc. (NYSE:ATUS) is an American corporation headquartered in Long Island City, New York. It allows customers to create Internet Protocol-based virtual private networks, businesses to run IP-based advertising campaigns and perform network security services, and also provides VoIP telephony and broadband Internet services.
As of Q4 2022, 27 of the 943 hedge funds included in Insider Monkey’s database had purchased Altice USA, Inc. (NYSE:ATUS) stock. The firm’s largest hedge fund investor is Jonathan Kolatch’s Redwood Capital Management, which owns 15 million shares worth $70 million.
7. Adeia Inc. (NASDAQ:ADEA)
Most recent P/E ratio: 6.49
Adeia Inc. (NASDAQ:ADEA) is an American corporation headquartered in San Jose, California. It enables TV companies to distribute their programming over the Internet, helps Multi-Channel Video Data Distribution Service Providers (MVDDS) run their business, and companies that rely on Internet advertising to generate streaming revenue to make money.
In the fourth quarter of 2022, 17 of the 943 hedge funds surveyed by Insider Monkey had bought shares in Adeia Inc. (NASDAQ:ADEA).
6. Turkcell Iletisim Hizmetleri AS (NYSE:TKC)
Most recent P/E ratio: 6.26
Turkcell Iletisim Hizmetleri AS (NYSE:TKC) is a Turkish company headquartered in Istanbul, Turkey. The company has a global presence with operations in Germany, the Netherlands and other countries. It has a digital music service, a mobile browser, fixed and mobile internet products, and a digital business services portfolio consisting of cybersecurity and Internet of Things (IoT) services.
As of the end of last year’s fourth quarter, five of the 943 hedge funds included in Insider Monkey’s database had purchased shares in Turkcell Iletisim Hizmetleri AS (NYSE:TKC). Of these, the company’s largest investor is Richard Oldfield’s Oldfield Partners, which owns 1.7 million shares worth $8.4 million.
VEON Ltd. (NASDAQ:VEON), Turkcell Iletisim Hizmetleri AS (NYSE:TKC), Magyar Telekom Tvkzlsi Nyilvnosan Mkd Rszvnytrsasg (OTCMKTS:MYTAY) and KT Corporation (NYSE:KT). are some cheap internet stocks.
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Disclosure: None. 12 cheap internet stocks to buy now is originally published on Insider Monkey.
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