StockStory Favors LegalZoom, Flags Risks at Etsy and Expedia

StockStory named LegalZoom a consumer internet stock to watch, while flagging Etsy and Expedia for risks. Its assessment cited LegalZoom’s growth and margins, and concerns about buyer trends at Etsy and costs at Expedia.

The publisher said consumer internet stocks gained 10.1% over the past six months, lagging the S&P 500 by 6.2 percentage points. It described the industry as exposed to shifts in consumer spending.

StockStory said Etsy’s active buyers fell 2.1% annually and earnings per share grew 1.4% annually over the past three years. It also pointed to weak engagement and sluggish demand, and said the shares traded at 12.1 times forward EV/EBITDA.

For Expedia, the publisher cited estimated sales growth of 6.4% over the next 12 months and high marketing expenses. It said the company had focused on growing bookings, putting platform monetization efforts in the background. Expedia traded at 7.1 times forward EV/EBITDA, according to the article.

StockStory’s positive view of LegalZoom rested on subscription units growing by an average of 10.7% annually and user spending increasing 17.2% annually. It also cited a 23.1% EBITDA margin and said profits had risen as the business scaled. The publisher said the shares traded at four times forward EV/EBITDA.