Turmoil at Twitter prompted us to look into the Internet software and services sector. The company announced this week that it would replace its CEO on poor financial performance tied to inability to increase the base of 300 million active users. The growth in mobile is a driver for companies in the sector. Another important revenue driver is growth in cloud computing services. And finally, another driver of revenues for these companies is the growth in digital advertising. Digital advertising is a growing share of total advertising spending, which itself is a function of a growing economy, so one could expect these internet software and services companies to benefit from of a growing market. Here are some of the best internet software and services companies TheStreet Quant Ratings says you should consider looking at. Number 3 is j2 Global. With an 'A-' rating, the company's strengths can be seen in its revenue growth and expanding profit margins. 2nd is, Akamai Technologies. This rating is also an 'A-.' Akamai thrives in its increase in net income and robust revenue growth. Number 1 is NetEase. With an 'A' rating the company flourishes in its increase in net income and solid stock price performance. TheStreet Ratings are algorithmic stock picks based on 32 major data points. S&P 500 stocks rated 'buy' yielded a 16-and-a-half-percent return in 2014, beating the S&P 500 Total Return Index by more than 300 basis points. For the full reports on these stocks, you can check out TheStreet.com/QuantRatings.
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