Four Internet Delivery Service Stocks to Watch in a Thriving Market
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Sep 23 2025
0mins
Source: NASDAQ.COM
Industry Overview: The Zacks Internet - Delivery Services industry includes companies providing various online services such as food delivery, travel booking, and web hosting, with growth driven by increased smartphone usage and internet access, although profitability remains a challenge due to high R&D and marketing costs.
Trends and Challenges: Key trends include shifting consumer preferences towards online services and technological innovations improving delivery efficiency; however, risks from tariff wars and high upfront costs for expansion could impact profitability, especially against competition from major tech firms.
Market Performance: The industry has underperformed compared to the S&P 500 and the broader technology sector, with a modest gain of 0.2% over the past year, while the S&P 500 and tech sector saw increases of 18.4% and 30.1%, respectively.
Stock Highlights: Notable companies in the industry include GoDaddy, Vipshop Holdings, QuinStreet, and Asure Software, all of which are experiencing growth driven by strategic initiatives and market demand, with positive earnings outlooks reflected in upward revisions of consensus estimates.
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Analyst Views on VIPS
Wall Street analysts forecast VIPS stock price to rise over the next 12 months. According to Wall Street analysts, the average 1-year price target for VIPS is 21.12 USD with a low forecast of 18.00 USD and a high forecast of 23.60 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
6 Analyst Rating
3 Buy
3 Hold
0 Sell
Moderate Buy
Current: 17.500
Low
18.00
Averages
21.12
High
23.60
Current: 17.500
Low
18.00
Averages
21.12
High
23.60
About VIPS
Vipshop Holdings Ltd is an online discount retailer for brands in China. The Company offers branded products to consumers in China through flash sales mainly on its vip.com Website. The Company's segment is sales, product distribution and offering of goods on its online platforms. The Company conducts its business through its subsidiaries and consolidated affiliated entities in China. Through its flash sales model, the Company sells limited quantities of discounted branded products online for limited periods of time. The Company offers diversified product offerings from over 17,000 domestic and international brands, including apparel for women, men and children, fashion goods, cosmetics, home goods and other lifestyle products. The Company offers a range of products and services for consumers through lefeng.com, specializing in branded cosmetics, apparel, healthcare products, food and other consumer products.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
Polaris Capital Fully Exits Vipshop Holdings
- Stake Reduction: On January 29, Polaris Capital disclosed to the SEC that it sold its entire stake in Vipshop, offloading 5.07 million shares in a transaction valued at approximately $99.54 million, indicating a diminished confidence in the stock.
- Asset Reallocation: Vipshop previously represented 6.5% of Polaris's AUM, and this complete exit suggests a strategic shift towards sectors with clearer earnings visibility, particularly in U.S.-listed banks and healthcare.
- Stable Financials: Vipshop reported a 3.4% year-over-year revenue increase to $3 billion and a nearly 17% rise in net income in the latest quarter, reflecting stable fundamentals, yet Polaris's exit may signal caution regarding the Chinese consumer market.
- Market Performance: As of January 28, Vipshop shares were priced at $17.67, up 23.7% over the past year, outperforming the S&P 500 by 8.74 percentage points, indicating its ongoing competitiveness in the e-commerce sector.
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KraneShares CSI China Internet ETF Declines 2.1%, Vipshop Falls 7.4%
- ETF Underperformance: The KraneShares CSI China Internet ETF fell approximately 2.1% in Friday afternoon trading, indicating a lack of investor confidence in the sector, which may influence asset allocation decisions.
- Vipshop Stock Decline: Vipshop's shares dropped about 7.4% on Friday, reflecting market concerns over its future performance, potentially leading investors to reassess its competitiveness in the e-commerce space.
- Education Stocks Pressured: Tal Education Group's stock fell approximately 3.9% on the same day, highlighting ongoing pressures in the education sector that could impact its long-term growth outlook.
- Market Sentiment Weak: Overall market sentiment remains weak, particularly for Chinese internet-related stocks, which may lead to decreased liquidity and investor confidence in related ETFs.
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