Are These The Best E-Commerce Stocks For Your June 2022 Watchlist?
As the broader stock market continues to seek direction amidst a period of uncertainty, e-commerce stocks could be worth noting. Overall, the industry, similar to markets in recent months, has and continues to see ups and downs. This would be especially apparent when you compare the industry’s performance at the peak of the pandemic. Accordingly, as consumers leave their homes more often, spending on digital commerce would slow down, right? Not necessarily. Sure, the top e-commerce companies around may not be seeing pandemic-era growth, but they continue to perform commendably.
Take Chinese e-commerce firm Pinduoduo (NASDAQ: PDD) for example. In its latest quarterly earnings update last week, the company reported a total revenue of $3.55 billion. Alongside this, Pinduoduo’s earnings per share for the quarter is $0.44. For reference, this would be versus consensus earnings per share estimates of $0.25. Not to mention, Pinduoduo’s net income of $389.82 million would be a notable increase from its losses of $436.33 million the same quarter last year. Of course, the company’s services would be in demand amidst pandemic lockdowns in China. However, this would indicate that Pinduoduo remains a go-to for Chinese consumers across the board.
At the same time, even the likes of Etsy (NASDAQ: ETSY) are receiving rosy updates from analysts. Namely, JMP Securities initiated coverage on ETSY stock this week with a Market Outperform rating. According to analyst Nicholas Jones, Etsy’s growing brand awareness is “lasting as opposed to transitory.” As such, JMP currently sees “plenty of opportunity for ETSY to continue driving GMV growth through further improvement of brand awareness, geographic expansion, and technology investments.” With all this in mind, would you consider looking out for these e-commerce stocks in the stock market today?
E-Commerce Stocks To Watch Today
To begin with, we have pet products e-commerce titan, Chewy. In brief, Chewy is a leading name in the online pet product industry today. Through its vast library of offerings, pet owners can find just about anything their furry friends require. In detail, the company sells pet food, toys, and even delivers vet prescriptions. Notably, consumers have access to all these services via Chewy’s one-stop pet e-commerce platform. For a sense of scale, according to the company’s latest filings, it currently has over 20.6 million active customers. Speaking of its latest filings, CHWY stock is now gaining traction following Chewy’s quarterly earnings update.
According to the earnings report, Chewy’s total revenue for the quarter is $2.43 billion. Additionally, the company’s quarterly earnings per share are $0.04. To put things into perspective, the consensus on Wall Street is revenue of $2.42 billion and a loss per share of $0.14. With Chewy’s surprise profit in mind, it would make sense that CHWY stock is making waves in the stock market. This would be the case as Chewy offers consumers a sense of convenience beyond most conventional pet stores.
Regarding its overall trajectory, the company notes, “While consumer demand remains resilient and pricing and cost are more aligned than they were in the second half of 2021, ongoing volatility in the macro environment continues to make accurate forecasting difficult.” For one thing, Chewy’s conservative take on its business outlook could be worth considering as well. Because of all this, would CHWY stock be a top watch in your opinion?
Next, we have GameStop, one of the largest video game retailers in the world. The company operates over 4,500 stores across the globe, with the bulk of its stores in the U.S. and Canada. It also operates under the EB Games and Zing Pop Culture brands. Notably, it launched its digital asset wallet to allow gamers and others to store, send, and receive cryptocurrencies and non-fungible tokens (NFT).
The GameStop Wallet is a self-custodial Ethereum wallet and can be downloaded from the Chrome Web Store. A non-custodial wallet allows users to access their assets via a private key known only to them. The setup will also be compatible with hardware wallets and reduces the risk of it being hacked. It will also enable transactions on GameStop’s NFT marketplace, which is expected to launch in the second quarter of the company’s fiscal year.
On Wednesday, the company announced its first-quarter financials for fiscal year 2022. Net sales for the quarter were $1.38 billion, increasing by 7.9% year-over-year. Inventory was $917.6 million at the close of the quarter compared to $570.9 million at the close of the prior year’s first quarter. This reflects an improving in-stock level in merchandise to meet increased customer demand and also offset supply chain headwinds. Given this piece of news, is GME stock a buy right now?
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Last on today’s list, we have Shopify, an e-commerce company that is a leading provider of infrastructure for commerce. It offers trusted tools to start, manage, and grow a retail business of any size. Its services are designed for reliability while delivering a better shopping experience for consumers all around the globe.
For the most part, Shopify appears to be open to adapting its e-commerce operations as well. Evidently, as of earlier this week, the company is now working with DePay, a pioneering name in Web3-related payments. Through the current partnership, Shopify merchants can now accept direct payments to their store wallets in the form of digital tokens supported on the blockchain. According to Shopify, there are “tens of thousands of accepted tokens” for this service. Moreover, the company also adds that this is the first-ever integration of a wallet-to-wallet payment solution for Shopify merchants.
Speaking on all this in further detail is Shopify’s Product Partner Manager, Ashley Fulks. She says that the company’s growing blockchain ecosystem would signal its commitment to supporting merchants. This would be through its openness towards alternative payment methods on their storefronts. As Shopify continues to diversify its e-commerce business to shifting fintech trends, SHOP stock could be in focus. Would you say the same?