Do You Have These Top E-Commerce Stocks On Your Watchlist?
Some of the best-performing stocks last year were e-commerce stocks. Admittedly, this is because of the pandemic keeping people at home. Coupled with the ease of use and convenience of online shopping, the industry has boomed. The massive boost in customers is no doubt a driving factor as the industry continues to increase its market share. Most of the top e-commerce stocks now are riding high from the tailwinds from 2020. But, as we are now in a new year, investors may be wondering if this streak can continue.
In reality, 2021 did not bring much change. The coronavirus pandemic continues to ravage most of the world. Even with efforts to inoculate the general public, we could still be months away from stopping the disease. In that time, we could see more people spending their hard-earned cash through the countless e-commerce platforms out there. I may not be the only one that thinks so, investors appear to be flocking to e-commerce stocks at the moment too. African e-commerce giant Jumia (NYSE: JMIA) has seen gains of over 600% in the past year. On the local end, Chewy (NYSE: CHWY) and Wish (NASDAQ: WISH) have also been in the spotlight lately.
Whether it is consumers’ needs or wants, there is an e-commerce option to obtain it. In the same fashion, businesses have made the push to bolster their e-commerce services. Adding to that, tailwinds from the $900 billion U.S. stimulus package could set up a perfect storm for e-commerce investors. However, not all e-commerce companies are made the same. To give yourself the best chance at big gains, you will have to be aware of the companies that are leading the pack. In line with that, here is a list of the best e-commerce stocks to buy [or avoid] in the stock market today.
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Should You Be Watching These Top E-Commerce Stocks?
Bed, Bath & Beyond Inc.
Starting us off is domestic retail giant Bed, Bath & Beyond, or BBBY. The company’s shares have recovered tremendously since the March lows and are sitting at gains of over 530%. As with most of its peers, the company has made a successful shift towards e-commerce, to say the least. Seeing as consumers had all their vacation plans canceled, they could be more inclined to splurge on home improvements. Notably, BBBY stock is up by over 22% this week as it announced new additions to its marketing department.
Earlier this week, the company brought on two new strategic marketing leaders. They are Kristi Argyilan as Senior VP, Brand Innovations, and Jim Reath Senior VP, Marketing. Chief Brand Officer Cindy Davis said, “Kristi and Jim bring deep expertise building brands, businesses, and long-lasting customer relationships across the retail and consumer goods sectors, experience that will help us innovate and inspire our customers to unlock the magic in every room.” To point out, Argyilan and Reath come from Target (NYSE: TGT) and Macy’s (NYSE: M) respectively. Investors could see this as BBBY seeking to bolster their current teams for a busy 2021 ahead.
In terms of financials, the company appears to be doing well. BBBY reported total revenue of $2.6 billion in its recent quarter fiscal posted last week. Moreover, it saw a 62% jump in cash on hand year-over-year. This added up to a massive $1.46 billion by the end of the quarter. Despite falling slightly short of general estimates, the company did see digital sales increase by 94% year-over-year. With its latest moves in mind, could BBBY stock return to its former glory in 2021? I’ll let you decide.
Our next entry needs no introduction because it is Amazon. The company has its strengths in various fields thanks to its deep pockets and ever-growing ambitions. AMZN stock despite its high valuation has skyrocketed by over 69% in the past year. Given its leading position in the field of e-commerce, investors could be wondering if it is making any moves lately.
Just last week, the company announced that it had purchased eleven Boeing 767 aircraft to expand its delivery capabilities. VP of Amazon Global Air, Sarah Rhoads explained, “Our goal is to continue delivering for customers across the U.S. in the way that they expect from Amazon, and purchasing our own aircraft is a natural next step toward that goal.” Impressively, four of the eleven aircraft are already undergoing passenger to cargo conversion and will likely join Amazon’s fleet later this year. The company said in a statement, “Amazon Air continues to expand globally to meet the needs of its growing customer base while investing in jobs and sustainable solutions to power its network.” If anything, the company has shown investors that it has no plans on falling behind in the e-commerce industry. Naturally, this would explain why AMZN stock is still on investors’ radars.
Backing these massive plays is a very solid pool of resources. Back in October, the company reportedly brought in $96.14 billion in total revenue in its recent quarter. Moreover, it saw massive year-over-year surges of 192% in earnings per share and 196% in net income. As Amazon shows no signs of slowing down, do you think AMZN stock will follow suit?
Following that, is another e-commerce titan, Shopify. The company has and continues to make huge profits from enabling e-commerce services for countless businesses. Its proprietary platform and retail point-of-sale systems have become a business-saving service for many struggling retailers amidst the pandemic. As expected, SHOP stock has been on a tear since the pandemic started in March. As a result, investors may be wondering if it still has room to grow given its $1199.82 price tag.
Well, just yesterday, the company made $2 billion thanks to its stake in the newly-listed Affirm (NASDAQ: AFRM). The public finance company has been working together with Shopify since July 2020. Through their alliance, Affirm became the exclusive provider for Shop Pay, Shopify’s checkout service. Simply put, Affirm became Shopify’s “buy now, pay later” service through Shop Pay Installments. In return, Shopify was granted warrants to buy over 20 million Affirm shares. SHOP stockholders would see this as an excellent long-term play by the company.
If that wasn’t enough, Shopify saw green across the board in its recent quarter fiscal posted in October. The company reported massive year-over-year gains of 96% in total revenue and 174% in cash on hand. CFO Amy Shapero said, “More entrepreneurs are signing on to Shopify so they can quickly and easily put their ideas into action. We continue to evolve our global commerce operating system to make it easier for merchants to get online and start selling, get discovered, and get their goods to buyers while providing a delightful shopping experience.” Given its current financial position, the company surely has the means to finance its global plans. Investors will surely be watching SHOP stock closely thanks to all of this. Will you be doing the same?