Looking For The Best E-Commerce Stocks To Buy Right Now?
We saw e-commerce stocks rise to unprecedented heights in the stock market this year. This is unsurprising as the coronavirus pandemic had virtually kept the masses at home. Many consumers resorted to e-commerce after traditional brick-and-mortar stores shut down this year. Even pre-coronavirus, there has been widespread adoption of the e-commerce industry, driving top e-commerce stocks higher in recent years. Many of these online stores would not need a physical front to sell their goods, so cheaper goods could be sold. The shift to e-commerce made sense with the various discounts that can be found in online shopping.
If anything, the pandemic was the catalyst to this shift in global consumer demand. Why bother going out to a brick-and-mortar store when you can get the latest gadgets or apparel with a click of a button. The added convenience of online shopping presents the perfect alternative to most consumers in these circumstances. Look at e-commerce titans like Amazon (AMZN Stock Report) and Alibaba (BABA Stock report) who have enjoyed success this year. Amazon for instance has a market capitalization of $1.6 trillion today and is one of the most valuable companies in the world.
The trend that is e-commerce would likely continue as well after the pandemic is over. With the holiday season around the corner, investors looking for high returns could turn to e-commerce stocks. With that in mind, are these the best e-commerce stocks to buy before the year ends?
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Best E-Commerce Stocks To Buy [Or Sell] Before 2021: Shopify Inc.
Shopify (SHOP Stock Report) is a multinational e-commerce company that is based in Ontario, Canada. The all-in-one commerce platform powers over 1 million businesses worldwide. It allows people to achieve independence by making it easier to start, run, and grow a business. Impressively, the company has contributed to $319 billion in economic activity worldwide between 2016 to 2019. The company’s shares are up by over 150% year-to-date and are currently traded at $1059.17 at the close of Monday’s trading session.
Shopify is now the most valuable company in Canada, with a valuation of $129 billion. Recently, the company announced its third-quarter financial results in October. Impressively, Shopify posted total revenue of $767.4 million, which is a 96% increase year-over-year. Shopify also posted a staggering gross merchandise volume (GMV) of $30.9 billion, an impressive 109% increase compared to a year earlier. Evidently, Shopify has benefitted from the tailwinds of the pandemic.
Earlier this month, the company announced that it’s Black Friday and Cyber Monday weekend resulted in sales of $5.1 billion. This record-breaking figure is a 76% increase from last year’s Black Friday/Cyber Monday weekend. Shopify’s President, Harley Finklestein says it best, “The accelerated shift to digital commerce triggered by COVID-19 is continuing, as more consumers shop online and entrepreneurs step up to meet demand.” With such a strong financial record, will you consider adding SHOP stock to your portfolio?
Best E-Commerce Stocks To Buy [Or Sell] Before 2021: Chewy Inc.
Chewy (CHWY Stock Report) is an e-commerce company for pet food and other pet-related products. The Florida based company is a trusted online destination for pet parents and partners worldwide. The company commits to product innovation and is constantly striving to find new and better ways to improve its customers’ experience. Chewy stocks are up by over 30% in the last month alone.
Fresh off the company’s third-quarter fiscal last week, the company reported net sales of $1.78 billion, which grew by 45% year-over-year. Chewy also reported an impressive 17.8 million active customers, a 39.8% increase compared to a year earlier. These are truly impressive figures that would be able to sustain the company’s long-term growth. In the company’s financial guidance for its fourth quarter, Chewy expects net sales of $1.94 billion to $1.96 billion, which is a 43% to 45% growth year-over-year.
The company is able to retain customers and maintain its recurring revenue through its Autoship subscription. It essentially allows easy repeat deliveries of customer’s go-to pet food and medicine. The subscription allows customers to enjoy additional perks such as discounts and free shipping. The Autoship segment alone grew by 42.5% year-over-year at $1.23 billion. The online pet retail giant certainly has a lot of growth potential. In October, the company announced that it is launching a telehealth service for pets. This is on top of its pharmacy business that has generated $500 million in revenue this year. With such exciting development surrounding the company, will you have CHWY stock on your watchlist?
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Best E-Commerce Stocks To Buy [Or Sell] Before 2021: JD.com Inc.
JD.com (JD Stock Report) is an e-commerce giant that is based in Beijing. The company has invested in high tech and artificial intelligence delivery through drones, autonomous technology, and robots. It also possesses one of the largest drone delivery systems, infrastructure, and capability in the world. The company’s shares have doubled year-to-date.
The company has just announced its third-quarter results last month and have blown investors’ expectations. JD.com reported net revenue of $25.7 billion, which is a 29.2% increase from a year earlier. In this quarter, the company also saw its annual active customer accounts increase by 32.1% to 441.6 million. It is the clearest indication that the company has not shown any sign of stopping. JD.com continues to show strong growth momentum as it has a compound annual growth rate of 34% for its net revenue from 2015 to 2019. Not many companies can pull off such an impressive feat.
In recent news, JD.com customers got to participate in a trial to try out China’s new digital currency. Known officially as the Digital Currency Electronic Payment (DCEP), the digital yuan was conducted as a partnership between JD Digits, the company’s financial arm with the People’s Bank of China. It differs from other cryptocurrencies as DCEP is backed by the country’s central bank as a digital version of the yuan. This digital currency can be used in JD’s offline stores and outside the company’s ecosystem. With all things considered, will JD stock be a top e-commerce stock to watch?
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
