In this article, we will look at 15 of the largest internet companies in the world. If you want to see more of the biggest internet companies in the world, head over to 5 Largest Internet Companies in the World.
The internet has grown tremendously over the past few decades.
According to IDC, there were only 16 million internet users at the end of 1995, representing about 0.4% of the world’s population. Due to cheaper computers, rising incomes, and more online utilities, however, the number of people who used the internet increased to 248 million by the end of 1999, representing 4.1% of the world’s population.
Although the internet bubble burst in 2000, the number of internet users has continued to grow. With more organic growth, the number of internet users exceeded 1 billion in 2005 and 5 billion in 2020. As of July 2022, there were 5.473 billion internet users representing approximately 69% of the world’s population according to Internet World Stats.
With the advancements in technology, there will likely be more internet users in the future.
One potential way to deliver more internet to the world is satellites. A leader in satellite internet Starlink describes its services, “Starlink is the world’s first and largest satellite constellation that uses low Earth orbit to deliver broadband internet capable of supporting streaming, online gaming, video calls and more. Leveraging advanced satellites and user hardware along with our deep experience in both spacecraft and on-orbit operations, Starlink delivers high-speed, low-latency internet to users across world.”
With Starlink, it is possible to get high speed broadband from space. Starlink already has more than 2,000 satellites in space that collectively offer service to 32 countries. Starlink also benefits because it is a division of SpaceX, which has considerable experience in launching rockets. Starlink added, “Starlink is ideally suited for areas of the world where connectivity is typically a challenge. Unbound by traditional ground infrastructure, Starlink can deliver high-speed broadband internet to locations where access is unreliable or completely unavailable.”
Although Starlink is expensive for many areas of the world due to its current monthly cost and also the hardware costs for the satellite dish and router, future costs could be reduced significantly as more people use it. Other companies may also 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 is potential for bigger markets and more growth for internet companies. With more income potential, there is also the potential for more income.
Due to the growth of the internet over the past few decades, some internet companies have expanded significantly in size and market capitalization. As a result, some of the largest internet companies are worth more than $100 billion in market capitalization and two are worth more than $1 trillion.
2022
2022 will be quite a challenging year for the markets as the Federal Reserve has raised interest rates 5 times already. With inflation remaining high, many expect the US central bank to raise rates further by the end of the year.
Due to the headwinds, many of the world’s largest internet companies have also been affected. With uncertainty, it may be a good idea for investors to have a well-diversified portfolio of stocks in many different sectors.
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For our list, we took the top 15 companies by market capitalization from companiesmarketcap.com’s Biggest internet companies by market cap list.
For our data, we used companiesmarketcap.com 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 the number of hedge fund holders.
15 Largest Internet Companies in the World
15. Equinix, Inc. (NASDAQ:EQIX)
Market Capitalization as of 10/29: $51.73 billion
Number of Hedge Fund Holders: 38
Equinix, Inc. (NASDAQ:EQIX) is a datacenter REIT that hosts much of the infrastructure needed for companies to provide digital services online. Although the stock has performed well since 2012, Equinix, Inc. stock has declined. (NASDAQ:EQIX) is up about 33% year to date due to higher interest rates and other headwinds. With the expected continued growth of the internet, Equinix, Inc. (NASDAQ:EQIX) has more growth over the long term, however.
Next to Meta Platforms, Inc. (NASDAQ:META), Amazon.com, Inc. (NASDAQ:AMZN), and Alphabet Inc. (NASDAQ:GOOG), Equinix, Inc. (NASDAQ:EQIX) is among the 15 largest internet companies in the world in terms of market capitalization.
14. Uber Technologies, Inc. (NYSE:UBER)
Market Capitalization as of 10/29: $54.44 billion
Number of Hedge Fund Holders: 129
Uber Technologies, Inc. (NYSE:UBER) is a leading ride share app that also offers grocery and food delivery services. Although analysts do not expect the company to be profitable in terms of next year’s EPS, Uber Technologies, Inc.’s losses. (NYSE:UBER) has declined in recent years and the company is closer to profitability than ever. If Uber Technologies, Inc. continues to evolve. (NYSE:UBER), the company also has potential for further growth.
13. JD.Com, Inc. (NASDAQ:JD)
Market Capitalization as of 10/29: $59.38 billion
Number of Hedge Fund Holders: 62
JD.Com, Inc. (NASDAQ:JD) is a leading Chinese e-commerce company. Due to macro headwinds as well as potential delisting concerns, shares of JD.Com, Inc. (NASDAQ:JD) has fallen 45% year to date. Since the e-commerce market in China is not growing as it used to, JD.Com, Inc. will need. (NASDAQ:JD) to change to meet growth expectations.
12. Pinduoduo Inc. (NASDAQ:PDD)
Market Capitalization as of 10/29: $66.94 billion
Number of Hedge Fund Holders: 41
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. is also facing. (NASDAQ:PDD) of potential delisting concerns. Compared to its e-commerce peers in China, Pinduoduo Inc. (NASDAQ:PDD) hasn’t fallen much in 2022, however, with shares down 9.2% year to date.
11. Airbnb, Inc. (NASDAQ:ABNB)
Market Capitalization as of 10/29: $73.67 billion
Number of Hedge Fund Holders: 57
Airbnb, Inc. (NASDAQ:ABNB) is a leading online short term home stay marketplace. In 2022, shares of Airbnb, Inc. (NASDAQ:ABNB) has fallen 31% year to date on concerns that a potential recession could reduce demand for Airbnb, Inc.’s travel and services. (NASDAQ: ABNB). If the economy recovers and Airbnb, Inc. can maintain (NASDAQ:ABNB) its market share, the stock has growth potential.
10. Booking Holdings Inc. (NASDAQ:BKNG)
Market Capitalization as of 10/29: $74.31 billion
Number of Hedge Fund Holders: 93
Booking Holdings Inc. (NASDAQ:BKNG) is a leading provider of online travel and restaurant reservations. Although shares have more than doubled since 2012, Booking Holdings Inc.’s stock (NASDAQ:BKNG) is down 22% year to date due to economic woes. If there is a recession next year, travel demand may decrease at least in the near term. On the decline, however, Booking Holdings Inc. (NASDAQ:BKNG) trades for a forward P/E of 15.34, which could be attractive if the company can meet earnings growth expectations for the future.
9. ServiceNow, Inc. (NYSE:NOW)
Market Capitalization as of 10/29: $84.92 billion
Number of Hedge Fund Holders: 99
ServiceNow, Inc. (NYSE:NOW) is a cloud company that offers a digital platform whose core capabilities can “digitize, connect, and automate siled processes to create workflow.” Because of the company’s value proposition, 80% of the Fortune 500 work at ServiceNow, Inc. (NYSE:NOW). Although shares are down 35% year to date, analysts expect ServiceNow, Inc. (NYSE:NOW) will grow earnings rapidly over the next five years. On 10/29, ServiceNow, Inc. (NYSE:NOW) had a market capitalization of $84.92 billion, ranking it #9 on our list of the 15 Largest 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 potential expansion in Hong Kong and international markets due to slowing growth in China. Although China has the largest internet population in the world, the market for food delivery in the country is well developed and growth may be more easily achieved internationally.
7. Paypal Holdings, Inc. (NASDAQ:PYPL)
Market Capitalization as of 10/29: $99.74 billion
Number of Hedge Fund Holders: 97
Paypal Holdings, Inc. (NASDAQ:PYPL) is an online payments company whose shares have fallen 54% this year due to broader market weakness. As a result of the drop, Paypal now trades at a forward P/E of 18.05, which could be attractive if interest rates don’t rise too much and the company maintains its market share in terms of of online payments.
Although the company’s userbase is not growing as fast as previously expected, Paypal Holdings, Inc. (NASDAQ:PYPL) is hoping to generate more revenue per user to aid growth.
6. Netflix, Inc. (NASDAQ:NFLX)
Market Capitalization as of 10/29: $131.6 billion
Number of Hedge Fund Holders: 95
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 grown significantly from its May levels as the market becomes more optimistic that the company will be able to maintain its userbase despite increased competition. An ad-supported tier would also help in terms of number of users.
Like Netflix, Inc. (NASDAQ:NFLX), Meta Platforms, Inc. (NASDAQ:META), Amazon.com, Inc. (NASDAQ:AMZN), and Alphabet Inc. (NASDAQ:GOOG) is among the world’s largest internet companies in terms of market capitalization.
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Disclosure: None. 15 Largest Internet Companies in the World was originally published on Insider Monkey.