Thursday, December 1 2022

Do you have these e-commerce stocks on your list right now?

2021 has been a mixed year for e-commerce stocks. While many existing and new companies continue to grow, their stock prices have not. After all, e-commerce stocks have been among the biggest gainers in the stock market during the pandemic, while their physical counterparts have been negatively affected. So, now that people are comfortably stepping outside again, physical retail is also back. However, could the current sell-off in e-commerce stocks be slightly overdone? Like it or not, the industry still has considerable growth prospects in the future.

Also, the industry rarely lacks exciting developments. Recently, we have seen two e-commerce giants in their respective regions form a partnership. Chinese online retailer, JD.com (NASDAQ: JD) has partnered with Shopify (NYSE: SHOP). In short, the deal will allow Shopify merchants to list their products on JD’s cross-border e-commerce platform, JD Worldwide. As a result, it will help global brands tap into China’s massive appetite for imported products. With that in mind, let’s take a look at some of the best e-commerce stocks to watch in the stock market today.

Best Ecommerce Stocks to Watch in January 2022

MercadoLibre

MercadoLibre is one of the largest e-commerce companies in Latin America. Essentially, the company enables trading through its marketplace platform. The platform is designed to provide users with a portfolio of services that facilitate business transactions. For those unaware, Latin America is widely regarded as the fastest growing e-commerce region in the world. It should come as no surprise, then, that MELI stock is often mentioned among the top e-commerce stocks.

Yesterday, the company acquired shares in the 2TM group and made a strategic investment in Paxos. 2TM Group is a parent company of MercadoBitcoin.com among others in its blockchain-based wallet.

Meanwhile, Paxos is a blockchain company that offers crypto investments. Safe to say that these investments reinforce MercadoLibre’s commitment to the development and use of crypto assets and blockchain technology. With this in mind, would you buy MELI shares?

walmart

Unlike Mercadolibre which has been a force to be reckoned with in the e-commerce space, walmart is one of the largest traditional retail operators in the world. That said, the current trend of e-commerce has pushed the company to bring its products and services online.

best retail stocks (WMT stock)

The company offers an assortment of everyday low-priced merchandise and services. Now let’s take a look at what new e-commerce initiatives the company has embarked on recently.

Recently, Walmart announced plans to build a fulfillment center in Olive Branch. The center aims to support the company’s rapidly growing supply chain network and e-commerce business. With an estimated size of over 1,000,000 square feet, it will stock millions of items of the company’s low-cost daily merchandise and be ready to ship directly to customers at high speed. Given this exciting development, would WMT stocks deserve a spot on your watchlist?

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Etsy

Another great e-commerce company worth noting would be Etsy. In detail, the company operates bilateral online marketplaces that connect buyers and sellers around the world. Etsy stands out as the global destination for creative products. Sellers will have access to a range of tools and services that address key business needs.

best ecommerce stocks (ETSY stock)

For example, Etsy sellers can pay for placement of their listings in search results and have Etsy shipping labels. Unfortunately, ETSY stock has slid lower over the past month. However, could this be a long-term investment opportunity?

Well, some analysts seem to think so. For starters, KeyBanc’s Edward Yruma upgraded overweight ETSY stock in a recent research report. He thinks there is a good chance that the company will triple its turnover in the long term. Additionally, another Jefferies analyst maintained his Buy rating despite a sharp pullback in Etsy’s stock price. He, too, thinks this could be an interesting buying opportunity. If you share the same sentiment as them, would you consider adding ETSY stock to your watchlist?

Global-e

Global-e is an Israel-based company that develops the e-commerce platform of the same name. It enables direct-to-consumer cross-border e-commerce. Retailers can increase international traffic conversion and sales with its end-to-end solutions that combine location-based capabilities, big data business intelligence models and cross-border experience. Despite the bearish sentiment around the industry right now, GLBE stock is still up over 40% in the past year.

GLBE Stock

The company started the year by announcing the completion of its acquisition of Flow Commerce. For the uninitiated, Flow is a tech-enabled cross-border e-commerce software solution for emerging brands.

So, by adding Flow’s robust API-based technology to the company’s ecosystem, Global-e will be well positioned to provide small merchants with the best solution for their needs. Not to mention, it could also allow Global-e to expand the scope of its exclusive relationship with Shopify to offer certain cross-border services. With that in mind, would GLBE stocks be one to watch going forward?

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Amazon

To sum up the list, we have to include one of the largest e-commerce companies in the world, Amazon. The Company engages in the retail sale of consumer products and subscriptions worldwide. For the most part, it sells merchandise and content purchased for resale from third-party sellers. That said, Amazon is now a tech conglomerate that often pushes its limits with a focus on innovation. For example, the company’s Amazon Web Services (AWS) is a comprehensive and widely adopted cloud platform.

best tech stocks (AMZN stock)

Earlier this week, Amazon announced that it would launch a clothing store called Amazon Style. The first store will be located in the Los Angeles suburb of Glendale, California. In the past, Amazon has explored physical stores to sell books but never clothes. The store will feature women’s and men’s apparel, footwear and accessories from a mix of well-known and emerging brands.

On top of that, the GM of Amazon Style says consumers will “find everything from the $10 basic to designer jeans to the timeless $400 piece.“Safe to say, Amazon targets all consumer groups. With all that said and done, do you still consider AMZN stocks to be the best e-commerce stocks to buy today?


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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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