Making A List Of The Best E-Commerce Stocks To Buy? 4 To Consider
Most e-commerce stocks have had a bumpy ride on the stock market lately. Understandably this is because investors shifting their attention from pandemic stocks to post-pandemic stocks. What does this mean? Well, the current sentiment could be that the pandemic is coming to an end sooner than we expected. As a result, companies that flourished throughout the pandemic could begin to decelerate in terms of gains. However, despite the current rate of vaccinations, we could be looking at another boost in the sector soon.
Namely, the $1.9 trillion COVID relief package is nearing approval this week. No doubt, this would provide additional funds to Americans amidst these troubling times. For the e-commerce industry, it could mean more business as consumers receive more discretionary dollars to spend. Besides, we all saw what the previous round of stimulus cheques did for overall holiday retail spending. Take consumer tech giant Apple (NASDAQ: AAPL) for example. The company saw a record quarterly revenue of over $111 billion despite the pandemic limiting brick-and-mortar operations. Meanwhile, home improvement companies like Lovesac (NASDAQ: LOVE) are also seeing sizable bumps in year-over-year sales figures. Given all of this, could now be the time to invest in the top e-commerce stocks? If you’re leaning towards a yes, then here are four that are trending right now.
4 Top E-Commerce Stocks To Buy [Or Sell] Now
- Peloton Interactive Inc. (NASDAQ: PTON)
- Etsy Inc. (NASDAQ: ETSY)
- Amazon.com Inc. (NASDAQ: AMZN)
- Alibaba Group Holding Limited (NYSE: BABA)
Peloton Interactive Inc.
Right off the bat, we have Peloton. The company develops and markets home exercise equipment while also offering related workout programs. According to Peloton, it is the largest interactive fitness platform in the world with over 4.4 million members. Generally, homebound consumers would turn to Peloton’s offerings to meet their exercise needs from the comfort of their homes. Overall, Peloton continues to benefit from this as it offers both the equipment and services used to do so. Likewise, PTON stock is looking at gains of over 300% over the past year. All this is great, but the question now would be how does Peloton plan to stay viable in a post-pandemic world?
Well, the company announced yesterday that it would be expanding towards the land Down Under. Essentially, Peloton is making its entry into the Australian market, marking the brand’s entry into the Asia Pacific region. The company isn’t pulling any punches as it is bringing over all of its flagship offerings in this expansion. If that wasn’t enough, it was also reported that the second-largest U.S. public pension tripled its PTON stock holdings. Ideally, if Peloton can retain its current user base, I could see PTON stock gaining more this year. Would you say the same?
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Another top e-commerce player now would be Etsy. In brief, the company mainly operates via its e-commerce website, selling handmade or vintage items and craft supplies. Through its global marketplace, Etsy connects millions of buyers and sellers from across the globe. Whether it is home décor and furniture or accessories and hobby-related items, Etsy has plenty to offer. Similarly, ETSY stock has brought many returns to investors with gains of over 500% since the March 2020 lows.
Evidently, the pandemic has boosted Etsy’s earnings substantially. In its recent quarter fiscal posted last month, the company saw its total revenue more than double year-over-year. Additionally, Etsy saw its gross merchandise sales gain by over 117% in that time as well. Moving forward, CEO Josh Silverman said, “We are just getting started executing on our long-term growth strategy, focused on highly differentiated and defensible competitive advantages within a $1.7 trillion market opportunity.” For its current quarter, the company projects top-line revenue of about $536 million, a respectable 39% year-over-year increase. According to Silverman, Etsy hit its 2023 goals throughout fiscal 2020. Time will tell if the company can make the most of its current success. In the meantime, would you consider ETSY stock a buy?
When it comes to e-commerce, few companies can boast the success of Amazon. Of course, the company has been making waves across the board through its other divisions. But, one thing that remains dominant is its massive e-commerce empire. In particular, we can see this from its latest earnings figures posted last month. To begin with, Amazon posted a record quarterly revenue of over $125 billion. Moreover, the company also doubled its net income year-over-year thanks to its e-commerce operations. Because of all this, it makes sense that AMZN stock would be in the limelight now. Especially since the company’s shares have been mostly trading sideways this year.
Nevertheless, Amazon does not seem to be slowing down as it continues to look towards bolstering its e-commerce capabilities. In detail, Amazon exercised options to acquire shares in air cargo operator Air Transport Services Group (NASDAQ: ATSG) yesterday. By extension, the transaction places Amazon as an almost 20% shareholder of the company. According to ASTG, Amazon has enough warrants to double its current position. Elsewhere, Amazon India reportedly scaled up its “Local Shops” program to facilitate 50,000 offline retailers in the country. If anything, Amazon seems intent on keeping e-commerce thriving in a post-pandemic world. Could all this make AMZN stock worth investing in now?
Alibaba Group Holding Limited
Following that, we have Chinese multinational tech company, Alibaba. Similar to our previous entry, the company is a juggernaut in the e-commerce space. Specifically, it is the largest e-commerce presence in China. For the uninitiated, the company also boasts a wide portfolio with several tech divisions. As you’d expect, Alibaba posted solid figures in its third-quarter fiscal posted last month. In it, the company reported a total revenue of over $33.8 billion for the quarter, a 37% year-over-year jump. According to Alibaba, its retail marketplace had 902 million mobile monthly active users as of December 2020. Regardless of its fantastic fiscal year, Alibaba is keeping busy, expanding its operations internationally over the past week.
Primarily, Alibaba’s logistics division Cainiao Smart Logistics Network (Cainiao) is now in a partnership with Saudia Cargo (Saudia). Through its alliance with the Saudi Arabian air freight carrier, Alibaba will be creating a “sky bridge”. The purpose of this is to connect the global e-commerce markets in Asia, Europe, and the Middle East. In theory, the new flights being launched could have Middle Eastern consumers receiving their online orders from China in about 10 days. Clearly, this is a fantastic move by Alibaba as it further refines its delivery services around the globe. In light of all this, will you be adding BABA stock to your portfolio?