Internet Stocks Have Had an Amazing Run, but How Much Longer Will It Last?

By Bespoke Investment Group  SEP 26, 2013 11:14 AM

NQ Mobile is up the most, followed by Orbitz Worldwide and Netflix.


The stock market has gotten a few bumps and bruises on its ride higher this year, but one area that has had a pretty smooth ride the whole way is the Internet group.  It seems like recently every time you look at the ticker, stocks like Facebook (NASDAQ:FB), Netflix (NASDAQ:NFLX), Pandora (NYSE:P), and Yahoo (NASDAQ:YHOO) are in the green, even when the overall market is in the red.

The Internet group has had a pretty amazing run during this bull market, and it has been accentuated by humongous gains in 2013.  Below is a chart showing the performance of the Nasdaq Internet Stock Index (INDEXNASDAQ:QNET) since the start of the bull market on March 9, 2009.  As shown, the Internet index is up 387% over this time period, compared to a gain of 207% for the Nasdaq-100 (INDEXNASDAQ:NDX) and +150% for the S&P 500 (INDEXSP:.INX).  So far in 2013, the Internet stock index is up 48%!  Its big jump over the last few months really stands out in the chart below.

Below is a table showing the best-performing stocks in the 81-member Nasdaq Internet Stock Index so far in 2013.  As shown, NQ Mobile (NYSE:NQ) is up the most with a gain of 286%, followed by Orbitz Worldwide (NYSE:OWW) at 258% and Netflix at 232%.  YY Inc (YY) and Zillow (NASDAQ:Z) round out the top five with YTD gains of more than 200% as well.  Other notable stocks on the list include Pandora with a YTD gain of 177%, Groupon (NASDAQ:GRPN) at 140%, Facebook at 86% and Yahoo at 57%.  

How much longer can this run last?  

This article was originally published by Bespoke Investment Group.
No positions in stocks mentioned.