Are These 2 Top E-Commerce Stocks A Good Buy This Month?
E-Commerce stocks have been on the rise due to the large influx of online sales. The world is experiencing something that has never been seen in our lifetimes before. The effects of the coronavirus pandemic caused the economy to take a dive. People are staying at home to avoid catching the virus. Since retail locations and shopping malls are closed, people are buying goods online.
This is very good news for e-commerce companies. Currently many e-commerce stocks have benefitted from the effects of the pandemic. Many e-commerce stocks were able to recover or rise higher than they once were. Investors aren’t too sure what will happen to e-commerce stocks once the pandemic is over. This doesn’t mean you shouldn’t watch some of the e-commerce stocks in the market.
Product sales and new product announcements are two things that can create more action in the market for e-commerce stocks. Even before the pandemic began, e-commerce stocks have been on the rise. Many shopping malls saw a decline in customers due to consumers shopping online. Some shopping malls were forced to close for good. This is evidence that the e-commerce business is large and still growing. Now it is time to look at some of the top e-commerce stocks to watch in the month of June.
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Top E-Commerce Stocks To Watch In June: Etsy Inc.
On this list of e-commerce stocks, we must talk about Etsy Inc. (ETSY stock report). Etsy is an e-commerce company with a focus on handmade and vintage items. The company was founded in 2005, in Brooklyn New York, and has grown to be a very large corporation. Recently due to the coronavirus, Etsy has seen a big increase in sales. This has made shares of ETSY stock soar to new heights. Etsy dominates the niche they are a part of, even doing better than the competitor Handmade, a website owned by Amazon.
In Etsy’s impressive first quarter, revenue rose 34.7%. In addition to revenue increasing, gross merchandise sales rose 32.2% for this e-commerce company. In the second quarter, Etsy’s sales are surging once again. Revenue is on the rise, but this time it is an increase of 70%-90%. These sales have had a grand effect on shares of ETSY stock. Shares of ETSY stock were around $50 before the pandemic. They had a decline at first, but have now been rising consistently. On June 11th, ETSY stock traded an average of $78.50 a share. In the last 4 weeks ETSY stock reached its all time high of $85.84 a share.
With e-commerce on the rise, ETSY stock has the potential to see continuous gains. If the company can report positive financials, ETSY stock will continue to rise. The stock market is in a volatile place right now and so are e-commerce stocks. Due to its recent momentum, Etsy looks to be an e-commerce stock to watch.
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Top E-Commerce Stock To Watch In June: Stitch Fix Inc.
The second e-commerce stock to watch on the list is Stitch Fix Inc. (SFIX stock report). Stitch Fix is an e-commerce company that deals with clothing. This e-commerce stock focuses on curating recommendations for people looking for outfits. For example, once on the website you enter your size, style, and your budget and the site shows you the best items for your criteria. The company went public in 2017 with a $1.6 billion evaluation.
Shares of SFIX stock recently fell because of a recent earnings report. But that does not mean that SFIX stock is performing poorly in the market. In fact, shares of SFIX stock started to rebound and has made a full recovery. The main reason for this e-commerce stock being down on June 11th is due to the DOW losing nearly 1,500 points. If Stitch Fix can report good earnings then SFIX stock has the potential to run higher. This is assuming the DOW makes a recovery from the 1,455 points it is down.
The volatility of e-commerce stocks is not turning investors away though. SFIX stock making a recovery in share price is very notable. Same with ETSY stock reaching new heights in its market history. These recent movements are the reason that these e-commerce stocks are something to watch for the future.