4 Top E-Commerce Stocks For Your Watchlist
E-commerce stocks were among the biggest winners in the stock market over the past year. That said, if you’re now looking for such a huge return in a similar timeframe, it is not going to be a straightforward affair. However, if you’re looking for top e-commerce stocks to buy with potentially huge returns, the investment can be made with the intent of holding for a long time. And not just with a one-year time frame.
For many of us, the COVID-19 pandemic quickly turned e-commerce from a convenience into a necessity. It changed how we do business, who we shop with and how companies operate. But it’s not as if the space wasn’t doing well before. Even before the coronavirus pandemic, consumers were already enjoying the convenience of purchasing products online. The COVID-19 outbreak is simply speeding up adoption.
Given how this is the new normal, we can see how e-commerce companies like Amazon (NASDAQ: AMZN) have seen substantial gains in the past year. Still, the outlook is still optimistic as the e-commerce giant will be reporting its first-quarter earnings on Thursday, April 29. Presently many of the best e-commerce stocks to buy have profited from the effects of the pandemic. Numerous e-commerce stocks were able to mend or trend higher than they once were. All things considered, do you have these top e-commerce stocks on your watchlist in the stock market this week?
E-Commerce Stocks To Buy [Or Avoid] Now
- Alibaba Group Holdings Ltd. (NYSE: BABA)
- GameStop Corp. (NYSE: GME)
- Sea Ltd. (NYSE: SE)
- Shopify Inc. (NYSE: SHOP)
Among the top e-commerce stocks in the stock market today, one particularly worth watching is Alibaba. Since reaching a peak towards the end of October 2020, the Chinese e-commerce stock has taken a breather, falling over 25%. This came after the unsuccessful listing of its fintech affiliate, Ant Group. More recently, action by the Chinese government has also influenced BABA stock price movement. Nevertheless, investors appear to be staying the course with the stock.
For those who are following the company’s development closely, you would have known that the Chinese government’s State Administration for Market Regulation (SAMR) slapped Alibaba with a $2.8 billion antitrust fine. Normally, this would be a huge cause of concern.
However, if we take a step back and look at the bigger picture, the penalty is not even 1% of Alibaba’s market cap. It’s worth pointing out that the long-term potential of the company remains largely intact. After all, it is very unlikely that a government would kill one of the country’s most innovative and ambitious companies. Considering that, do you think BABA stock is trading at an attractive valuation?
Next up, GameStop is a video game, gaming merchandise, and consumer electronics retailer that has been hot on the news recently. From being one of the most heavily shorted stocks, GME stock has enjoyed staggering gains of over 1,500% in January when it peaked. It has since taken a breather but is still up by over 800% year-to-date. However, GME stock is expected to receive another boost today, up 7.74% at its pre-market trading as of 6.51 a.m. ET.
Gamestop’s stock price climbed after the video game retailer said it raised $551 million in a stock sale. The fundraising initiative was meant to speed up the company’s e-commerce transformation. If you look at its latest fiscal report, the company posted sales of $2.122 billion for the quarter. In detail, its global e-commerce sales increased by 175% and represented 34% of net sales for the quarter. This is certainly in line with the company’s recent strategy to shift towards more e-commerce. Given the excitement surrounding the company’s e-commerce development, will you consider buying GME stock in the stock market today?
With an expectation to double its e-commerce value in 2021 via online shopping, Sea Ltd. continues to progress as Southeast Asia’s leading e-commerce platform. The company posted an almost doubled loss of $523.6 million in the fourth quarter of 2020, from $283.8 million in the previous year. Nevertheless, revenues rose to $1.6 billion, from $777.2 million a year ago. Also, the company has also just started its food delivery division, capitalizing on its vast existing customer base to compete against other food delivery services such as Grab.
Backed by Tencent Holdings (OTCMKTS: TCEHY), SE stock is one of the best-performing stocks worldwide over the past year. The ongoing pandemic also seemed to benefit the company. This came as physical purchases are greatly reduced due to restricted movement in countries of Southeast Asia.
Becoming the middlemen of consumers and entrepreneurs, the company “will use technology to better serve consumers and small businesses”, according to David Ma, Sea Ltd’s Chief Investment Officer. Considering the phenomenal growth rates in its business, it’s interesting to see how the company’s overall growth will play out this year. With all that in mind, would you bet on SE stock to capitalize on one of the fastest-growing regions in Asia?
Shopify is a multinational tech company with a focus on e-commerce. It provides tools for businesses to manage their online presence. Its platform and services focus on delivering a better shopping experience for consumers. Shopify has been able to gain huge traction during the pandemic crisis. Total revenue in the fourth quarter of 2020 was $977.7 million. That’s a 94% increase from the same quarter a year ago. Gross merchandise volume also saw a similar increase, nearly doubling to $41.1 billion.
The company’s stock price popped by over 6% on Monday seemingly on no key news. One of the plausible reasons is that inventors are bidding SHOP stock higher in anticipation of the company’s first-quarter 2021 earnings release on April 28. Considering Shopify’s strong performance, many would be curious as to how such growth rates can continue going forward.
Chances are, a good portion of merchants signing up on the platform will stick around. That could be because of the growing appreciation of the need for an online presence to stay in business. Therefore, would you be watching SHOP stock ahead of its first-quarter fiscal report this week?