Could These Be The Top E-Commerce Stocks To Watch Right Now?
E-commerce stocks had a historic year in the stock market last year. Well, it shouldn’t come as a surprise since many countries around the world were sent into lockdown. At that point, most shopping activities were conducted online. So, even those who were skeptical of online shopping initially must have been exposed to e-commerce platforms. This is of course due to the advancement of technology as well. Some company’s platforms such as Pinterest Inc (NYSE: PINS) even have augmented reality features that would allow you to have a rough idea of what you’re getting.
The shift to online shopping has resulted in many emerging e-commerce companies. For example, we have Jumia Technologies (NYSE: JMIA) that aims to be the top online marketplace in the whole of Africa. Perhaps, this should not be overlooked as e-commerce is still a growing sector in Africa. Moreover, JMIA stock has already soared by more than 400% just within the past year. Now, if you are optimistic about the future of e-commerce, here’s a list of four top e-commerce stocks to watch in the stock market today.
Best E-Commerce Stocks To Watch
- Etsy Inc (NASDAQ: ETSY)
- eBay Inc (NASDAQ: EBAY)
- Alibaba Group Holding Ltd (NYSE: BABA)
- Chewy Inc (NYSE: CHWY)
Let us start the list with Etsy. The company operates a marketplace where people globally connect, both online and offline to sell and buy goods. It also offers a range of seller services and tools that help entrepreneurs manage their businesses. As of now, the company’s seller services include Direct Checkout, Promoted Listings, Shipping Labels, and Pattern by Etsy. ETSY stock has risen by over 80% over the past year.
On Monday, Etsy signed a definitive agreement to acquire Elo7, a privately held marketplace for unique, handmade items, ranked as a top 10 e-commerce site in Brazil. The Elo7 marketplace connects approximately 1.9 million active buyers with approximately 56,000 active sellers and currently has approximately 8 million items for sale. Hence, this deal would establish Etsy’s presence in Latin America, an underpenetrated e-commerce region.
Etsy is not resting on its laurels. It also signed a definitive agreement to acquire Depop, a purpose-driven marketplace for unique fashion for $1.625 billion earlier in June. Depop is a community-powered marketplace to buy and sell unique fashion, with a mission to build the world’s most diverse and progressive home of fashion. It appears that 90% of Depop’s active users are under the age of 26. So, this could serve as a resale home for Gen Z consumers to the Etsy family. Given all these exciting developments, would you consider investing in ETSY stock?
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Next, we have one of the industry leaders of e-commerce, eBay. Essentially, the company operates marketplace platforms that connect buyers and sellers globally. This includes its online marketplace at ebay.com and the eBay suite of mobile apps. So, you could buy, sell, and pay for items through various online and offline channels. eBay stock has been one of the better-performing stocks within the e-commerce space this year. It has climbed by over 35% year-to-date.
Just last week, the company announced the completion of the transfer of its Classifieds business to Adevinta in exchange for $2.5 billion cash and a 44% equity stake in Adevinta. This combination will hopefully create a leading global online classifieds business. In the long run, both companies will be primed to benefit from its combined portfolio that may offer additional value for its customers and shareholders.
eBay also had an impressive first quarter to start the year with the highest revenue growth since 2005. Its revenue was $3.0 billion, up 42% on an as-reported basis. There was also increased activity on its platform. Annual active buyers grew by 7%, now at a total of 187 million. Meanwhile, its annual active sellers grew by 8%, for a total of 20 million. We can see that the company is firing on all cylinders as we recover from the global pandemic. With that in mind, would you add EBAY stock to your watchlist?
Alibaba Group Holding Ltd
Coming up next, we have one of the largest e-commerce companies in the world, Alibaba. The company’s technology infrastructure and marketing reach help merchants and brands to leverage the power of technology to engage its users, and customers to operate. As of today, its three main sites, Taobao, Tmall, and Alibaba.com boast hundreds of millions of users and host millions of merchants and businesses.
Fundamentally, the company is as strong as ever. For its fourth-quarter fiscal 2021 earnings report, its revenue climbed to $28.6 billion, representing a 64% increase. Alibaba also reported 811 million annual active consumers in China which represents an 11% growth year-over-year. This is important because retaining and attracting active consumers would support the company’s business model.
That said, it has not been a fantastic year for Alibaba this year. The company’s struggle this year was affected by the Chinese government. Alibaba was hit with a record fine of $2.75 billion earlier in April. However, the worst could be over for the company as the Chinese government is slowly shifting its focus to the company’s competitors. So, if you have missed the boat on BABA stock prior to this, could this be the classic buy-on-dip opportunity?
Last on this list, we have an e-commerce company that specializes in pet products, Chewy. In essence, it provides pet food and treats, pet supplies and pet medications, and other pet-health products, as well as pet services. Pet lovers out there could access all these products through its chewy.com retail website, and its mobile applications. The company stock may have been trading sideways since the start of the year. But, it has still climbed by over 70% over the past year.
In June, the company posted its first-quarter financial report that beat analysts’ expectations. Its net sales were $2.14 billion, growing 31.7% year-over-year. Meanwhile, its adjusted EBITDA came in at $77.4 million and its net income was $38.7 million. More importantly, Chewy added 600,000 active customers during the quarter which brings the number of active customers to 19.2 million. All in all, the company is growing in the right direction.
Furthermore, Chewy also continues to innovate on their popular telehealth service, Connect with a Vet. May’s expansion includes the highly anticipated video consultation feature which allows pre-scheduling virtual vet consultation and extended hours of operation including weekends. With this, customers gain more accessibility to the company’s services and a better experience overall. With that in mind, would CHWY stock make your watchlist?