LegalZoom Emerges as Internet Stock to Watch as Bumble, Chegg Face 9.2% and 27% Declines
Updated
Updated · Yahoo Finance · Aug 13
LegalZoom Emerges as Internet Stock to Watch as Bumble, Chegg Face 9.2% and 27% Declines
1 articles · Updated · Yahoo Finance · Aug 13
Summary
LegalZoom was singled out as the strongest consumer internet name, backed by 10.7% annual subscription-unit growth, 17.2% ARPU growth, and a 23.1% two-year EBITDA margin.
That resilience contrasted with Bumble, where paying users fell 6.5%, average revenue per buyer dropped 9.8% annually, and revenue is forecast to decline 9.2% over the next 12 months.
Chegg looked weaker still: Services subscribers have fallen 27% annually over two years, while shrinking revenue and poor cost adjustment cut EBITDA margin by 13.5 percentage points.
The stock screen comes as consumer internet shares have gained 12.8% over the past six months, roughly matching the S&P 500, but argues only companies with durable moats are likely to hold up.