Thursday, December 1 2022

There is no doubt that e-commerce stocks were one of the biggest gainers in the stock market at the start of the pandemic. But over the past six months, most of those stocks have fallen as investors worried about slowing growth in a post-pandemic world. And as consumers begin to spend their money on brick-and-mortar stores and travel experiences, it’s only natural that e-commerce spending will take a hit. Thus, such a trend could also contribute to the downward trend in e-commerce company stocks.

Additionally, concerns about inflation and rate hikes weighed on broader stock market sentiment. Would it be a good idea to buy financially sound companies with attractive valuations at such times? For example, we only have to look at the likes of Shopify. Despite exceptional growth in 2021, Shopify stock has lost more than 80% of its all-time high. While this may deter some investors from investing in these tech companies, others may buy the dips.

Elsewhere, the South Korean e-commerce giant coupang (NYSE: CPNG) already gave a preview of what’s to come earlier today. Its recent first quarter earnings have been impressive, to say the least. Its total revenue reached a record $5.1 billion, up 22% year-over-year. During this time, it also recorded the highest gross profit and gross profit margin in Coupang’s history. All in all, it might not be the worst idea to bet on the future of e-commerce stocks. If you share the same feeling, here are some of the best ecommerce stocks to watch in the stock market today.

Ecommerce Stock to Watch in May 2022

eBay

First, we have the global trading company eBay. Through its Marketplace platforms, buyers and sellers could connect to more than 190 marketplaces around the world. Its technology empowers its customers and gives everyone the opportunity to grow and prosper. No matter who or where they are, the ripple effect of his work is creating waves of change for customers and anyone who uses the company’s platform. Therefore, investors keeping an eye on the e-commerce industry would likely pay attention to EBAY stocks.

After all, eBay just had a better than expected fiscal first quarter of 2022. Despite the current macroeconomic headwinds, the company remains firm and its long-term strategy is still intact. The company posted revenue of $2.5 billion, down 6% from the year-ago quarter but beating most analysts’ expectations. Meanwhile, its non-GAAP earnings per share were $1.05, also beating expectations. Therefore, eBay has reassured its investors that the company is focused on the future with a view to sustainable growth.

On top of that, the company kicked off May with the launch of its third annual Up & Running Grants program. It’s about providing America’s small businesses with the resources they need to evolve, grow and thrive in the age of modern commerce. eBay recognizes that small businesses are essentially the backbone of its platform. So, this program is part of the company’s ongoing commitment to empower them while continuing to find ways to make eBay their platform of choice. All things considered, there seems to be plenty of positives to circulate. So, do you consider EBAY stock to be one of the top e-commerce stocks to watch?

Source: TD Ameritrade Terms of Service

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Shopify

Shopify is a software giant specializing in the field of e-commerce. In detail, the company provides a cloud-based multi-channel commerce platform for small and medium businesses. Merchants leverage its software to run their business across all of their sales channels, including web and mobile storefronts. Hence, giving merchants a single view of their business and customers across all sales channels. For these reasons, Shopify has been the commerce platform of choice for many merchants in any environment.

Last Thursday, the company announced its first quarter results. Shopify’s total revenue for the quarter improved to $1.2 billion, representing a 22% year-over-year increase and a compound annual growth rate of 60% over two years. Not to mention, its monthly recurring revenue also improved to $105.2 million, up 17% year over year. Admittedly, these numbers may not be as exhilarating as the early stages of the pandemic. However, that doesn’t change the fact that Shopify continues to grow in the right direction.

Additionally, the company also announced that it has entered into an agreement to acquire Deliverr, Inc. For those unaware, it is a fulfillment technology company that delivers simplicity and scalability to millions of traders. It also aims to remove the complexity of fragmented supply chain management. As such, Shopify will gain visibility and control of movement across the supply chain while enabling merchants to deliver on their promises of fast delivery across all channels. Given these encouraging developments, should investors pay more attention to SHOP stocks at this time?

SHOP stock
Source: TD Ameritrade Terms of Service

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Amazon

To sum up the list, it’s fair 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.

Although Amazon missed estimates in the last quarter, AWS showed great promise. The cloud computing segment grew 34% YoY over the past 2 years and 37% YoY in the first quarter. To say the least, it’s the key component helping Amazon weather the storm and move more of its workloads to the cloud. It’s also worth noting that Amazon is still the largest e-commerce company in the US, but has only penetrated about 13% of overall retail spend.

On top of that, Amazon launched “Buy with Prime” in April. This new feature will allow US-based Prime members to shop directly from merchants’ online stores. When you shop with Buy with Prime, checkout is simple and convenient. Prime members will use payment and shipping information stored in their Amazon account and receive timely shipping and delivery notifications after placing an order. Overall, there may still be reason for optimism when it comes to Amazon. With that in mind, could this be an opportunity to invest in AMZN stock at its current valuation?

AMZN Stock Chart
Source: TD Ameritrade Terms of Service

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Midam Ventures, LLC | (305) 306-3854 | 1501 Venera Ave, Coral Gables, FL 33146 | [email protected]



Midam Ventures, LLC | (305) 306-3854 | 1501 Venera Ave, Coral Gables, FL 33146 | [email protected]

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