Are These The Best E-Commerce Stocks To Buy Right Now?
There’s no question that e-commerce stocks have been trending in the stock market, even before the pandemic. There’s also increasing evidence that the e-commerce trend took a big step forward as the coronavirus pandemic shows no sign of abating. And on Wednesday, top e-commerce stocks were making big moves after new retail data showed that online shopping continued to dominate consumer purchases last month. According to data from the U.S. Census Bureau, e-commerce activities jumped 29% in November, compared to the same period a year ago.
What Does The New Retail Data Mean For E-Commerce Stocks?
The e-commerce trend continues to dominate the retail landscape and is expected to do so in the future. Contactless transactions have been the preferred way of shopping since the onset of the pandemic. Look at Etsy (ETSY Stock Report) or eBay (EBAY Stock Report) and you would understand what I meant. Since most traditional brick-and-mortar stores are operating at a reduced capacity, consumers have been purchasing things online. What’s noteworthy is that this phenomenon is not only happening in coronavirus hotspots. But online activities continue to exhibit strong momentum in China, which already has the virus under control. So, if you think e-commerce stocks would suffer when the pandemic ends, think again.
Wunong Net Technology Co. (WNW Stock Report) rocketed out of the gate since its public debut this Tuesday. The China-based e-commerce stock jumped 440% on Wednesday alone. This shows that investors have been looking for up-and-coming e-commerce stocks to buy instead of household names like Amazon.com (AMZN Stock Report) or even Alibaba (BABA Stock Report). The reason is obvious, and it’s because these smaller-cap e-commerce stocks offer huge potential upside. But let’s face it, not all e-commerce stocks will bring big growth to investors. Like it or not, picking the best e-commerce stocks may not be as easy as it seems. Therefore, with these e-commerce stocks trending in the stock market today, do you have them on your list?
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Top E-Commerce Stocks To Watch Right Now: Jumia Technologies
First, on the list, Jumia Technologies (JMIA Stock Report) is African e-commerce and digital payments company. The company has been the best e-commerce stock to buy in recent weeks. Jumia saw it’s company stock price rallied nearly 400% since October. Since then, JMIA stock has been on many investors’ watchlist. The surge in stock price came after strong positive commentary from analysts and an optimistic outlook from its quarterly report. Now that JMIA stock is on fire, many analysts are expecting it to deliver more gains in 2021.
From its most recent quarterly result, the company reported a gross profit of $28.14 million, a 22% increase from a year ago. The company’s JumiaPay recorded total payment volume which was 50% higher year-over-year at $58.21 million. Jumia serves over 1.2 billion consumers and 17 million SMEs all across Africa. It also boasts over 1 billion visits to its virtual marketplace in 2019 alone. Furthermore, the company also has over 40 million products, restaurants, and other services listed on its platform.
Jumia recently opened its African logistics network to third parties in order to help increase volume. This move will also help with negotiating better pricing on shipping and control costs. Jumia also currently benefits from being a leader in the continent as industry giants like Amazon and Alibaba have not been active in the continent. With such promising growth, would JMIA stock be a top tech stock to watch?
Top E-Commerce Stocks To Watch Right Now: Overstock.com
You could say that Overstock.com (OSTK Stock Report) is one of those under the radar e-commerce stocks in the stock market. The shares of Overstock.com have surged more than 800% year-to-date. And if you are in the blockchain industry, you would probably know that Overstock.com is not just an online retailer. This shows that the company is no longer a one-trick pony. While its tZero blockchain initiative has taken a more significant role for the company this year, the truth is, the retail segment still brings in the most revenue for the firm.
“After a record-setting second quarter, we maintained our momentum, continued to outperform expectations, and grew faster than competitors in the third quarter,” said Overstock CEO Jonathan Johnson. “Our quarterly gross sales in our Retail business doubled year over year once again and new customers grew 141%. These new customers are making repeat purchases at an increasing rate. Heading into the fourth quarter, I am as confident as ever in our Retail business maintaining sustainable, profitable market share growth.”
This year, OSTK stock went up by over 1,000%, before a correction recently. Many investors remain keen on the growth of the company’s blockchain and crypto venture. As exciting as Overstock.com’s involvement in the blockchain space may be, investors should also note that they are still not the company’s core business. Some analysts believe that the recent increase in bitcoin prices could suggest that a massive bull run is in the making. Now, as bitcoin breaks past the $22,000 levels, many investors are turning to OSTK stock. With two major themes, namely e-commerce and blockchain under its sleeves, is now the time to buy OSTK stock?
Top E-Commerce Stocks To Watch Right Now: Shopify Inc.
Shopify’s (SHOP Stock Report) stock closed higher on Wednesday for no company-specific reasons. The retail data could be one of the reasons why top e-commerce stock like Shopify is surging. The all-in-one commerce platform powers over 1 million businesses worldwide. It allows people to achieve independence by making it easier to start, run, and grow a business. The company’s shares are up by over 183% year-to-date and traded at $1157.31 at the close of Wednesday’s trading session.
Shopify is now the most valuable company in Canada, with a valuation of $141 billion. Earlier this month, the company announced that brands on its platform recorded sales of over $5.1 billion during the Black Friday/Cyber Monday weekend, up 76% from a year ago. During that time, the platform saw over 44 million consumers globally making purchases, a 50% jump year-over-year. Interestingly, the growth of sales was led by countries outside North America, with Japan, Italy, Germany, and the UK reporting triple-digit growth of sales on the platform.
In October, the company announced its third-quarter financial results. Shopify’s total revenue of $767.4 million was a 96% increase year-over-year. Shopify also posted a staggering gross merchandise volume (GMV) of $30.9 billion, an impressive 109% increase compared to a year earlier. Evidently, Shopify has benefitted from the tailwinds of the pandemic. Although vaccines are currently rolling out, the pandemic continues to force some states and countries to implement lockdowns. Even after the pandemic, there is a good chance many merchants will continue to stick around. With that in mind, would you consider adding SHOP stock to your watchlist?