In this article, we will take a look at 15 of the biggest internet companies in the world. If you want to see more of the biggest internet companies in the world, go directly to 5 Biggest Internet Companies in the World.
The internet has grown substantially over the past few decades.
According to the IDC, there were only 16 million users of the internet at the end of 1995, representing around 0.4% of the world's population. Due to cheaper computers, rising incomes, and more utility online, however, the number of people who used the internet rose to 248 million at the end of 1999, representing 4.1% of the world's population.
Although the internet bubble burst in 2000, the number of internet users continued to grow. With more organic growth, the number of internet users surpassed 1 billion in 2005 and 5 billion in 2020. As of July 2022, there are 5.473 billion internet users representing about 69% of the world's population according to Internet World Stats.
With advancements in technology, there will likely be even more internet users in the future.
One potential way to deliver more internet to the world are satellites. A leader in satellite internet Starlink describes its services, "Starlink is the world's first and largest satellite constellation using a low Earth orbit to deliver broadband internet capable of supporting streaming, online gaming, video calls and more. Leveraging advanced satellites and user hardware coupled with our deep experience with both spacecraft and on-orbit operations, Starlink delivers high-speed, low-latency internet to users all over the world."
With Starlink, it's possible to attain high speed broadband from space. Starlink already has more than 2,000 satellites in space that collectively offer service in 32 nations. Starlink also benefits given that it's a division of SpaceX, which has substantial experience in launching rockets. Starlink adds, "Starlink is ideally suited for areas of the globe where connectivity has typically been a challenge. Unbounded by traditional ground infrastructure, Starlink can deliver high-speed broadband internet to locations where access has been unreliable or completely unavailable."
Although Starlink is expensive for many places in the world given its current monthly cost and also the hardware costs for the satellite dish and router, the costs could decrease substantially in the future as more people use it. Other companies could also potentially decide to subsidize it or an alternative version of low orbit satellite internet to potentially gain more users.
With more people on the internet, there's potential for bigger markets and more growth for internet companies. With more potential revenues, there's also potential for more profits.
Given the growth of the internet in the past few decades, some internet companies have expanded substantially in scale and market capitalization. As a result, some of the largest internet companies are worth over $100 billion in market capitalization and two are worth over $1 trillion.
2022
2022 has been a pretty challenging year for the markets given that the Federal Reserve has increased interest rates 5 times already. With inflation remaining high, many expect the U.S. central bank to increase rates further by the end of the year.
Given the headwinds, many of the world's biggest internet companies have also been affected. With the uncertainty, it could be a good idea for investors to own a well diversified portfolio of stocks across many different sectors.
For our data, we used companiesmarketcap.com's data for market capitalization and we used the number of hedge funds in our database of 895 funds that held shares of the same stock at the end of Q2 2022 for number of hedge fund holders.
Equinix, Inc. (NASDAQ:EQIX) is a datacenter REIT that hosts much of the infrastructure needed for companies to provide digital services online. Although shares have done well since 2012, Equinix, Inc. (NASDAQ:EQIX) stock is down about 33% year to date due to the higher interest rates and other headwinds. With the expected continued growth of the internet, Equinix, Inc. (NASDAQ:EQIX) has more growth in the long term, however.
Alongside Meta Platforms, Inc. (NASDAQ:META), Amazon.com, Inc. (NASDAQ:AMZN), and Alphabet Inc. (NASDAQ:GOOG), Equinix, Inc. (NASDAQ:EQIX) is among the 15 biggest internet companies in the world in terms of market capitalization.
Uber Technologies, Inc. (NYSE:UBER) is a leading ride share app that also offers grocery and food delivery services. Although analysts don't expect the company to make a profit yet in terms of next year EPS, Uber Technologies, Inc. (NYSE:UBER)'s losses have decreased over the years and the company is closer to profitability than before. If Uber Technologies, Inc. (NYSE:UBER) continues innovating, the company has potential for more growth as well.
JD.Com, Inc. (NASDAQ:JD) is a leading Chinese e-commerce company. Given the macro headwinds as well as potential delisting concerns, shares of JD.Com, Inc. (NASDAQ:JD) have fallen 45% year to date. With the e-commerce market in China no longer growing the way it did before, JD.Com, Inc. (NASDAQ:JD) will need to innovate to meet growth expectations.
Pinduoduo Inc. (NASDAQ:PDD) is another Chinese e-commerce company that has faced macro headwinds such as lockdowns and slowing economic growth. Like other Chinese companies, Pinduoduo Inc. (NASDAQ:PDD) also faces potential delisting concerns. Compared to its e-commerce peers in China, Pinduoduo Inc. (NASDAQ:PDD) hasn't fallen all that much in 2022, however, with shares down 9.2% year to date.
Airbnb, Inc. (NASDAQ:ABNB) is a leading online short term home stay marketplace. In 2022, shares of Airbnb, Inc. (NASDAQ:ABNB) have fallen 31% year to date due to concern that a potential recession could lower demand for travel and Airbnb, Inc. (NASDAQ:ABNB)'s services. If the economy recovers and Airbnb, Inc. (NASDAQ:ABNB) retains its market share, the stock has growth potential.
Booking Holdings Inc. (NASDAQ:BKNG) is a leading travel and restaurant online reservation provider. Although shares have more than doubled from 2012, Booking Holdings Inc. (NASDAQ:BKNG)'s stock is down 22% year to date given the economic headwinds. If a recession occurs next year, travel demand could decrease at least in the near term. With the decline, however, Booking Holdings Inc. (NASDAQ:BKNG) trades for a forward P/E of 15.34, which could be attractive if the company meets its earnings growth expectations for the future.
ServiceNow, Inc. (NYSE:NOW) is a cloud company that offers a digital platform whose core capabilities can "digitize, connect, and automate siloed processes to make work flow." Given the company's value proposition, 80% of the Fortune 500 work with ServiceNow, Inc. (NYSE:NOW). Although shares are down 35% year to date, analyst expect ServiceNow, Inc. (NYSE:NOW) to grow earnings fairly quickly over the next five years. As of 10/29, ServiceNow, Inc. (NYSE:NOW) had a market capitalization of $84.92 billion, ranking it #9 on our list of 15 Biggest Internet Companies in the World.
8. Meituan
Market Capitalization as of 10/29: $96.03 billion
Meituan is a Chinese e-commerce platform for services. According to Bloomberg, Meituan is studying potentially expanding into Hong Kong and international markets given slowing growth in China. Although China has the world's largest internet population, the market for food delivery in the country is already well developed and growth could be easier to achieve internationally.
Paypal Holdings, Inc. (NASDAQ:PYPL) is an online payments company whose shares have fallen 54% this year due to the broader market weakness. As a result of the decline, Paypal now trades at a forward P/E of 18.05, which could be attractive if interest rates don't rise too much further and the company maintains its market share in terms of online payments.
Although the company's userbase isn't growing as fast as previously expected, Paypal Holdings, Inc. (NASDAQ:PYPL) hopes to realize more revenue per user to help growth.
Netflix, Inc. (NASDAQ:NFLX) is a leading internet streamer. Although shares of the stock are still down 51% year to date, Netflix, Inc. (NASDAQ:NFLX) has rallied substantially from its May levels as the market becomes more optimistic that the company will be able to maintain its userbase despite increasing competition. An ad-supported tier could also help in terms of the number of users.
Like Netflix, Inc. (NASDAQ:NFLX), Meta Platforms, Inc. (NASDAQ:META), Amazon.com, Inc. (NASDAQ:AMZN), and Alphabet Inc. (NASDAQ:GOOG) are among the biggest internet companies in the world in terms of market capitalization.
