Move Inc. (MOVE), OpenTable Inc (OPEN): Are These Internet Information Stocks Primed for Another Run?

OpenTable presents a buying opportunity?

OpenTable Inc (NASDAQ:OPEN) is another Internet stock which is available at lower levels after dropping 8% over the last month or so. The company provides restaurant reservation solutions primarily in all 50 states in the U.S. in addition to Canada, Germany, Japan, Mexico, and the United Kingdom.

Despite the recent pullback, which appears nothing more than a technical correction, the stock is up 34% over the year. This has been made possible by a series of encouraging financial performance quarter after quarter which helps in keeping some sanity in valuations.

For the twelve months ended Dec. 31, 2012, OpenTable Inc (NASDAQ:OPEN) had a 15.8% increase in top line while profit grew 11.2%. This was the fourth straight year of swelling revenue and profit. Although its forward price earnings ratio of 25 is not really cheap, this is probably the lowest in recent months for this debt-free company.

Foolish bottom line

Since traditional valuation techniques don’t capture key aspects of these growth companies, prospective investments in these stocks carry a bit of ‘leap of faith.’ This is bound to happen as some of these companies, such as OpenTable Inc (NASDAQ:OPEN), are not excelling in traditional markets but are creating new markets altogether. Overall, the stocks represent some of the best names around to participate in the emerging economy.

The article Are These Internet Information Stocks Primed for Another Run? originally appeared on Fool.com.

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