Are These The Best Online Retail Stocks To Buy Today?
Online retail stocks have been on the rise in the stock market over the past few years. In today’s world, almost everything can be done online. So, it would only be natural that retail is shifting to the internet as well. In fact, it is almost inconceivable for any major retailer not to sell online these days. After all, online retailers can increase their sales and profits faster than a brick-and-mortar establishment. This is simply because you could operate twenty-four hours a day, seven days a week.
For instance, online retailer Newegg Commerce Inc (NASDAQ: NEGG) jumped 148% during Wednesday’s trading. The movement in NEGG stock was driven by the news that Newegg was holding a sale of NVIDIA Corporation’s (NASDAQ: NVDA) GeForce RTX graphic cards which are supposedly rare. Thus, some may argue that it doesn’t take much to move stocks in a growing industry. You could even say that this is only the tip of the iceberg in the internet retailer space. Now, let us look at some of the top online retail stocks in the stock market this week.
Best Online Retail Stocks To Watch In July
- Pinterest Inc (NYSE: PINS)
- Shopify Inc (NYSE: SHOP)
- Jumia Technologies AG (NYSE: JMIA)
- Amazon.com, Inc (NASDAQ: AMZN)
Firstly, we have the visual discovery engine company, Pinterest. Essentially, it operates a platform where users can manage theme-based image collections and share inspirations for their lives. What some may not know is that the company also offers online marketing services to brands, which allows brands to connect with people based on their shared interests. PINS stock has been on an impressive climb over the past year. It has risen over 180% during this period.
Late in June, Pinterest announced the expansion of Idea Pins, its multi-page video Pin format, to all creators in India, Indonesia, Spain, Italy, Ireland, New Zealand, Brazil, Mexico, Argentina, Chile, Columbia, Peru, Japan, and Sweden. This means that anyone with a business account in these countries will be able to create inspiring content and closer interaction with their audiences. Ultimately, it aims to engage more of the community directly on Pinterest.
We also now know that the company will be announcing its second-quarter financial report on July 29, after the market closes. So, let us take this opportunity to review its first-quarter earnings report. Impressively, the company’s revenue came in at $485 million, which was up 78% year-over-year. Also, its net loss was reduced by 85% to $21.7 million. It appears that the company expects a second-quarter revenue growth estimate of 105% year-over-year. So, do you think Pinterest can maintain its momentum? If so, would you buy PINS stock ahead of its earnings report?
Moving on, we have one of the industry leaders in internet retail, Shopify. The company provides a cloud-based commerce platform designed for small and medium-sized businesses. Merchants could run their business across all of their sales channels, including Web, mobile storefronts, physical retail, social media storefronts, and marketplaces.
SHOP stock has been up by more than 20% over the past month. We could perhaps attribute this to two recent developments in June. First, Shopify embraced the “buy now, pay later” solution through its partnership with Affirm (NASDAQ: AFRM). This allows shoppers to make four, biweekly payments with no interest, hidden fees, or late fees. Secondly, the company has also expanded its checkout solution Shop Pay’s availability to merchants doing business on Facebook (NASDAQ: FB), Instagram, and Alphabet Inc (NASDAQ: GOOGL) division Google. So, marketers that rely on Facebook and Google can now utilize Shop Pay.
Fundamentally, the company is also in a strong position. During its first quarter, it reported revenue of $988.6 million, a growth of 110% year-over-year. Meanwhile, its net income was $1.25 billion compared with a net loss of $31.4 million for the prior-year quarter. This includes the calculation of $1.3 billion unrealized gain on equity investment in Affirm as a result of its IPO earlier this year. Given the amount of expansion and the growth potential, would SHOP stock be a top stock to buy?
Jumia Technologies AG
Jumia Technologies is a German-headquartered company specializing in online retail. The company operates an online marketplace for African consumers to buy and sell goods. Jumia also has a logistics business that consists of a large network of leased warehouses and pick-up stations for consumers. Dubbed as the “Amazon of Africa” by some, the company aims to dominate the internet retail space in Africa.
In May, the company reported its first-quarter financials. In it, gross profit increased by 11% year-over-year. Jumia says that its brand strength continues to grow and it is working towards increasing consumer convenience. It is also diversifying its monetization streams beyond commissions and fulfillments costs pass-through. One notable example is Jumia Advertising, an in-house digital advertising agency catering to both Jumia sellers and third parties.
The company’s stock was trading at a $69.89 all-time high back in February this year. Since then, it has faced some correction and has been trading sideways over the past few months. Having said that, the stock has still more than doubled in price over the past year. Also, with Africa’s surging population and untapped economic potential, all these could bode well for Jumia in the long run. With that in mind, would you agree that this would be an opportunity to buy JMIA stock on the dip?
To sum up the list, we have the e-commerce giant, Amazon. The company also manufactures and sells electronic devices, including Kindle, Fire tablets, Fire TVs, and many more. AMZN stock is currently trading at an all-time high range and is up by approximately 16% year-to-date.
Today, Amazon launched its first ‘Digital Kendra’ in India in Surat, Gujarat. These will serve as the brick-and-mortar resource centers that will provide micro, small and medium enterprises the opportunity to learn about the traits of e-commerce. They can now kick start their digital entrepreneur’s journey with the aid of a range of third-party services such as shipping and logistic support, digital marketing services, cataloging assistance, and taxation support. Hence, this would hasten the adoption of internet retail across India.
Given how dominant Amazon already is in the e-commerce space, the company still posted strong growth in the past year. That momentum continued in the first quarter of fiscal 2021. In detail, revenue came in 44% higher year-over-year to $108.5 billion, Meanwhile, net income more than tripled to $8.1 billion, and its earnings per share soared by 215%. All things considered, would you invest in AMZN stock?