Here Are 4 Trending E-commerce Stocks To Watch In The Stock Market Now
As December comes into view, should investors be watching e-commerce stocks in the stock market right now? It is safe to say the answer could be a resounding yes. While consumer spending at brick-and-mortar stores is poised to pick up through the holidays, it’s highly likely that the discovery of the new Omicron variant could make people more cautious about venturing out. And this could bode well for investors looking for top e-commerce stocks to buy.
In light of this, it appears that the near-term outlook for e-commerce sales for both discretionary items and necessities is looking more positive. Regardless of the severity of the new variant, e-commerce trends are likely here to stay. No doubt, there may be global supply chain issues that will affect the timeline of your shipment. But that doesn’t mean there’s no more opportunity in the space. For instance, online resale retailers such as The RealReal (NASDAQ: REAL) and ThredUp (NASDAQ: TDUP) bucked the trend by posting strong revenue growth in the third quarter.
In total, by 2023, the resale market is expected to reach $51 billion, according to a recent report from ThredUp. You may be unfamiliar with the two resale retailers I’ve just mentioned, but Etsy’s (NASDAQ: ETSY) significant growth during the pandemic is not something you want to miss. Many are even banking on ETSY stock given its significant potential to scale. Even though recent trends suggest that more shoppers are buying from resale retailers, traditional online retailers are not faring too bad either. With all that being said, let’s check out some of the top e-commerce stocks to watch in the stock market today.
Best E-Commerce Stocks To Watch Ahead Of December 2021
- Shopify Inc. (NYSE: SHOP)
- eBay Inc. (NASDAQ: EBAY)
- Sea Limited (NYSE: SE)
- Walmart Inc. (NYSE: WMT)
Shopify is making waves in the e-commerce space right now. This came after the Canadian-based online shopping platform recorded over $2.9 billion in sales during Black Friday this year. This represents a 22% increase from last year at a time when many consumers were reluctant to shop in person due to coronavirus concerns. More impressively, Shopify President Harley Finkelstein said its Shopify merchants have now surpassed last year’. For starters, Shopify offers technology that powers online stores for other businesses, and it also offers point-of-sale systems.
The company’s third fiscal quarter results showed this growth. Its revenue reached $1.1 billion, up 46% year over year. Shopify president Harley Finkelstein said merchants on the platform took 15 years to achieve $200 billion in cumulative gross merchandise value (GMV), but just 16 months to double that to $400 billion. For this latest quarter, GMV reached $42 billion for the period, up 35% from last year. With such strong results, it is safe to say that SHOP stock is one of the top e-commerce stocks to watch in the stock market.
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What started as an auction site has become a thriving online marketplace. With its focus on secondhand items, eBay has become indispensable for many during the ongoing supply chain crisis. Why wait for months for a new item to ship from abroad, when you can purchase it secondhand and have it shipped within days? This shift in shopping trend is a boon for eBay, which takes a portion from every sale made on the site. The company recently launched eBay Refurbished, where shoppers can find refurbished items from popular brands such as Dyson and Samsung. The refurbished items go through a thorough vetting process that ensures every item meets the company’s high-performance standards. Not to mention, these items will also come with a one- or two-years warranty.
Besides that, it is worth noting that eBay will be acquiring Sneaker Con Digital’s authentication business. This is a leading sneaker authenticator with operations in the U.S., U.K, Canada, Australia, and Germany. Ultimately, the deal further solidifies eBay’s vertical expansion strategy in sneakers and increases the confidence of customers in the purchase of high-value items. With all these in mind, EBAY stock could be an interesting one to watch in the stock market.
While relatively unknown on these shores, Sea is no doubt a household name in Asia. The Singapore-based company owns Shopee, one of the leading e-commerce sites in Southeast Asia, and Garena, an online games developer and publisher. This year, Shopee saw over 2 billion items sold on the site over the 11.11 sales period which is one of the biggest sales periods in Asia. Earlier this year, the company also launched Shopee in Poland, France, and Spain. Safe to say, the company’s e-commerce arm is expanding globally at an incredibly fast pace.
Sea’s latest fiscal quarter results are a reflection of this. The company recorded $2.7 billion in revenue, a surge of 122% year-over-year. CFO Tony Hou credited the rise in revenue to its e-commerce business and its self-developed game, Free Fire. Sea also raised its full year revenue guidance to $5 billion to $5.2 billion, up from the previous $4.7 billion to $4.9 billion. Keeping in mind Sea’s rapid expansion, could SE stock be one of the best e-commerce stocks to buy now?
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Last but not least, we have the retail giant that needs no introduction, Walmart. With the Omicron variant making an appearance, the multinational retail corporation could see shoppers make another beeline to its physical and online stores. Walmart also plays its part by continuing to innovate for its customers. Earlier this month, the company announced that it is acquiring “select technology assets” from Botmock. The start-up offers a set of tools for designing, prototyping, testing, and deploying conversational applications across platforms. Walmart plans to use this technology to enhance its conversational commerce services.
Walmart’s track record of keeping its customer’s satisfaction a priority would likely have a long-term positive impact. The company recorded $140.53 billion in revenue for its latest quarter, a rise of 4.3% year-over-year. On top of that, CEO Doug McMillon recently hinted that its holiday season has started on a solid note. In a meeting with President Joe Biden, McMillion said, “We think we are going to have a really good holiday season.” Considering all these, could WMT stock be worth watching right now?