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01/02/2006

Top 10 Best Performing Internet Stocks of 2005

2005 was a good year to be long Internet advertising and online gambling.  3 of the year's Top 10 performers, including the top 2, provide online advertising services to corporate clients, while 2 operate online gambling sites (3 if you consider online trading to be online gambling).

Unlike the boom years, 2005 did not see any 1,000% returns, or for that matter any 200% returns which makes it one of the first years not to see any real breakout performances.  Still, the Top 10 prove that if you get it right on the Internet you can still make a mint.

The only real requirement to be part of this list is that the company had to start 2005 with at least $50M in market cap and its business had to be focused on the Internet.  So, without further ado, here are the Top 10 Best Performing Internet Stocks of 2005:

  1. Aquantive
    Price Change: 182% Ticker:AQNT
    Comment
    : Combine Avenue A with online ad agency Razorfish and what do you get?  A pure play on online advertising services firm which, thanks to the booming Internet advertising market, had a great 2005.
  2. Digital Impact
    Price Change: 146% Ticker:DIGI
    Comment
    : Online direct marketing pioneer snapped up by Acxiom in May after its fortunes rebounded on strength of online advertising market.
  3. Netflix
    Price Change: 119% Ticker: NFLX
    Comment:  Pioneer of DVD rental subscription business that consolidated market position in 2005 after buying out Wal-mart's business and beating back a feeble challenge from Blockbuster.
  4. Google
    Price Change
    : 115% Ticker: GOOG
    Comment:  King of online search business continued torrid growth pace in 2005.  Flush with cash and possibilities, but market cap now exceeds $120BN.  A couple more years like this and it would usurp market cap king MSFT.
  5. Rediff
    Price Change: 113% Ticker: REDF
    Comment
    : India's largest online portal saw stock price soar in 2005 along with rest of      Indian stock market.
  6. Neteller
    Price Change
    : 110% Ticker: NLR.L
    Comment
    : The PayPal of online gambling saw market cap surpass $1BN as it turned in 100% Y/Y growth and net profit margins in excess of 50%.
  7. SportingBet
    Price Change: 86% Ticker: SBT.L
    Comment
    : The Internet's largest (by volume) online gambling operation increased its size with the acquisition of #3 online poker site in late 2004 but is issuing shares like crazy.
  8. The Street.com
    Price Change
    : 77% Ticker: TSCM
    Comment
    : Stock soared at end of year on takeover speculation of the now "pure play" media company.
  9. 24/7 Real Media
    Price Change
    : 70% Ticker: TFSM
    Comment
    : Online ad-network player saw shares improve throughout the year thanks to strong growth of online advertising and increasing enthusiasm for 24/7's strong exposure to Asia.
  10. Ameritrade
    Price Change
    : 69% Ticker: AMTD
    Comment
    : The largest online trading firm saw steady improvement in revenues and profit margins despite a flat market thanks to highly scaled position and dominance of active trader market segment.

January 2, 2006 in Internet, Stocks | Permalink

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