Its adjusted loss per share increased 50% year-over-year to $0.03. And the company had $726.92 million in cash and cash equivalents as of October 31, 2021. On July 13, 2021, ETSY acquired Depop, a London-based peer-to-peer xabcd tradingview social e-commerce company, for approximately $1.63 billion. The acquisition should extend ETSY’s opportunities in the high-frequency apparel sector, specifically in the fast-growing resale space serving Gen Z consumers.
On the bearish end of outlooks, the spate of downbeat reports in terms of inflation, consumer confidence, and potential recession continue to promote pessimism. Get Started Learn how you can make more money with IBD’s investing tools, top-performing stock lists, and educational content. MarketBeat does not provide personalized financial advice and does not issue recommendations or offers to buy stock or sell any security.
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- This fund focuses specifically on companies that operate online marketplace platforms or provide software or services to facilitate e-commerce.
- “Things are difficult right now and they’ll get worse in the short-term,” he said in an April 16 letter to shareholders.
- Additionally, consumer sentiment fell to its lowest level since the Great Recession in recent month.
- Analysts expect the company’s EPS to be $6.92 for its fiscal year 2022, ending March 31, 2022, representing a 15% decline from the prior-year period.
Investors seem to want this narrow segment, as this fund has amassed over $1.3 billion in assets since it launched in 2014. If you’re interested in owning one of the strongest athletic apparel retailers in the world, Nike should absolutely be on your shopping list. The company has really gotten its e-commerce strategy down, and Nike’s digital sales have been soaring as a result.
IBD will also highlight the best-performing retailers, like Costco , including fundamental and technical analysis. Receive a free world-class investing education from MarketBeat. Learn about financial terms, types of investments, trading strategies and more. View our full suite of financial calendars and market data tables, all for free. MarketBeat keeps track of Wall Street’s top-rated and best performing research analysts and the stocks they recommend to their clients on a daily basis.
Therefore, e-commerce stocks represent a multi-trillion-dollar growth opportunity over the next few years. In this article, we will be looking at the 16 best e-commerce stocks to buy in 2021. To skip our detailed analysis of the online retail sector, you can go directly to the 5 Best E-Commerce Stocks to Buy in 2021. If you’re interested in investing in the internet retail industry, take a closer look at what companies in this industry do and how the stocks have historically performed. Keep in mind that positive past performance doesn’t guarantee that a stock will continue to rise in the future.
The Southeast Asian and Latin American markets have populations of roughly 650 million people each and are one of the fastest-growing regions in terms of access to the internet and smartphones. There’s a good chance that Sea Limited may be a $1 trillion USD company at some point in the coming decades. As relevant as Mercado Libre is, its underlying markets face severe challenges. Thus, MELI may be one of the e-commerce stocks to avoid until further notice. The industry has done so well that some traditional retailers that pivoted to e-commerce are considering splitting their businesses in a bid to capitalize on the industry.
Trending E-Commerce Stocks For Your May 2022 Watch List
For one, it has a market cap of more than $166 billion even though it generates less than $3 billion in revenue and just $319 million in profit. Valuation – Always look at the company’s valuation because you want to invest in undervalued firms. However, at times, for growth stocks, looking at a valuation could see you avoiding really good companies. As a trader, you are only interested in the short-term movements of an asset. On the other hand, if you are an investor, your focus is on looking at the long-term.
April was a tough month for growth investors; the bear market continued, challenging even the most optimistic investors. Many stocks are setting new lows for the year — but where many see disaster, one can also see opportunity. All these ecommerce ETFs above should be available at any major broker. M1 has zero trade commissions and zero account fees, and offers fractional shares, dynamic rebalancing, and a sleek, user-friendly interface and mobile app. The fund is market cap weighted and global, but is still heavily concentrated in the U.S. at around 65%. Because it’s market cap weighted, the top 10 holdings comprise roughly 43% of the fund and include Shopify, Rakuten, Etsy, eBay, and Wayfair.
These 3 E-commerce Stocks Are Top Picks for Exposure to the Industry
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- Today, a large number of people are reliant on e-commerce, as over 2 billion people in the world are expected to be among the online shopping demographic in 2021.
- Target investors have been heading for the exit doors in droves since November, which has shares getting more and more attractive with every downtick.
- They have very little competition and new partnerships with major companies being announced on a regular basis.
In short, Shopify works with small- and medium-sized businesses to sell physical and digital products. The company, which has been disrupting the brick-and-mortar space since its founding 16 years ago, says it currently supports more than 1 million businesses in 175 countries. Most of the world’s best e-commerce stocks were already enjoying a tailwind from broader digital trends. As a result, e-commerce stocks provide investors with an attractive opportunity to capitalize on this lasting trend in 2022. Coupled with the recent echoes of war in Eastern Europe, e-commerce stocks have underperformed broader markets.
Under-$10 Sleeper Stocks to Buy Before Wall Street Wakes Up
It provides payment solutions under the PayPal, PayPal Credit, Braintree, Venmo, Xoom, Zettle, Hyperwallet, Honey, and Paidy names. Slowing growth and competition are fair concerns that investors may have about Shopify. However, I would argue that the stock’s dramatic decline compensates investors for the additional risk. Over the years, management has led Shopify from an underdog to a prominent e-commerce company.
MercadoLibre is growing rapidly, with profitability increasing and revenue up 74% to $7.1 billion in 2021. The company has continued to deliver brisk growth in 2022, avoiding the slowdown that has hit U.S. e-commerce companies. Remember I noted Emerging Markets seem to be the fastest growing e-commerce markets.
- Indeed, the spike seen amidst COVID layoffs has flipped sharply in the past two years, returning the labor market to an incredibly tight status.
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- Also, you can look at candlestick patterns like doji, hammer, and harami.
According to eMarketer, worldwide e-commerce revenue should exceed $5 trillionin 2022, accounting for more than a fifth of total retail sales. MercadoLibre, Inc. operates online commerce platforms in Latin America. The tremendous growth in e-commerce has propelled a number of big winners on the stock market, but there’s still plenty of opportunity left in online retail. Annual e-commerce sales grew about 15% in the 2010s, and the adoption of online shopping accelerated during the COVID-19 pandemic.
Take a deeper dive into e-commerce stocks
In 2020, e-commerce sales in Latin America grew 37% to $85 billion, making the region the fastest-growing e-commerce market globally. Without further ado, let’s look at the 16 best e-commerce stocks to buy in 2021. The average P/E ratio of the internet retail industry is 73.59x.
The company does e-commerce, logistics, and fintech, so it touches every aspect of a purchase, from ordering to fulfillment to payment. The company recently reported first-quarter 2022 results and posted strong growth; revenue increased 67% year over year. Many what are bearish and bullish markets of the best-performing e-commerce stocks over the past five years have been sold into the ground over the past year. You’ll see in a minute that a number of these companies are dealing with some short-term headaches, but there’s no need to overthink it.
The company also offers cloud-based industry solutions for various industries; Oracle application licenses; and Oracle license support services. The best e-commerce stocks depend on your portfolio and investment goals — while volatility can be ideal for day traders, long-term investors will want to look to stocks with steadier gains over time. In 2021, total payment volume on Mercado Pago topped $75 billion, while GMV on the marketplace was about $30 billion.
Following unprecedented stimulus payments in the wake of the COVID-19 pandemic, personal savings ballooned for US consumers. According to Raymond James estimates, these payments led to over $2T in excess savings to flow to US consumers. Of this staggering figure, the bank estimates that only about 10% of this excess has been utilized by newly-flush consumers.
Rebuy’s personalization, marketing, retention services, white-glove support, and a custom shopping cart should enable SHOP to help its merchants improve the shopping experience. While its recent numbers look weak, they should improve as headwinds in e-commerce ease and the Chinese market reopens from COVID-induced lockdowns. If the company manages to return to its pre-pandemic growth trajectory, the current share price discount won’t last long. Shopee is the most popular eCommerce marketplace for Southeast Asian countries and has recently penetrated the Latin American market as well. Sea Limited is now a $145 billion USD company, with 40% of it owned by Tencent.
Best Stocks To Buy Now? 2 Dow Jones Stocks To Watch This Week
The average SHOP stock price projection of $42.79 equates to 22.9% upside potential. Indeed, tech layoffs represent a stark contrast to the broader rise in national employment. Therefore, with discretionary spending possibly set to decline, SHOP may be one of the e-commerce stocks that might not fare well in the new monetary environment.