With GOOGL Falling, Which Internet Content Stocks Still Hold Strong?

Alphabet Inc. (NASDAQ: GOOGL) has had an interesting week. 

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While it’s had an outstanding year partially due to AI progress, the last week has been a different story, with a rough daily crash on the 24th and uncertainty still in the cards given legal proceedings, questions about the profitability of AI, and other factors. 

And while our Zen Ratings system doesn’t necessarily recommend against having GOOGL in your portfolio, it teeters between a B and a C, making it slightly above average. However, you don’t want a just “above average” stock to invest in. You want the best.

There are two stocks in the Online Content and Information sector that have a Zen Rating of A. This means they are within the top 5% of stocks we cover, and stocks with an A rating have an average annual return of +32.52%. These are:

1. Zedge (NYSEMKT: ZDGE)

People like personalization, and there is strong demand for smartphone personalization in particular. That’s ZDGE’s business, and the company’s smartphone application allows for a wide array of potential revenue streams, wide market saturation, and other advantages. 

And while ZDGE hasn’t had the best month when it comes to its share price, its Component Grades (see below) show deeper strengths as an investment. Sentiment is still strong, and its other scores indicate relatively stable growth potential. It has recently increased its quarterly dividend, has plenty of free cash flow, and still yet has room to grow.

2. Beachbody Company Inc (NASDAQ: BODI)

Operating in the key space between fitness and content, BODI operates multiple brands, including Breachbody On Demand, Team Beachbody, Openfit, and MYXfitness. It is also in the dietary supplement space and has a streaming platform with thousands of workouts. 

Currently, analysts see a strong potential upside to BODI, it has had an excellent rebound in the last month (see below), and has above average Component Grades for both Financials and Growth. We also covered it recently as a stock to watch, with 9 profitable quarters in a row, operational progress, and an excellent overall comeback story putting wind in its sails.

Investors will want to see if these trends continue, whether the company becomes profitable this year (it is currently on the cusp compared to previous years), and how demand for its brands develops.

Ratings and situations in this industry can change quickly, and news can come faster than the speed of your reasonable attention. How do you keep up, and how can you ensure you get the information you need? WallStreetZen Premium is just what your portfolio ordered. With it, you’ll get an unlimited watchlist, all the fundamental information you need, and more.

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