The holiday season started with a big bang as a large number of Americans shopped online, taking advantage of big deal days. This is especially true as consumers spent a record $10.8 billion shopping online on Black Friday, according to Adobe Analytics. This reflects an increase of 10% from last year's record (read: 5 Hot ETF Deals for Black Friday Shopping).
More than half (55%) of Black Friday online sales were made through smartphones – up from about 12.1% in 2023 – accounting for $5.9 billion, according to Adobe. Other online sales were done on desktop computers and other devices. Thanksgiving online spending rose 8.8% year over year to a record $6.1 billion.
The solid trend is likely to continue, with Cyber Monday expected to top Black Friday online sales with a record-breaking $13.2 billion, up 6.1% from last year. For the Cyber Week (the five-day period between Thanksgiving and Cyber Monday), Adobe expects $40.6 billion in online spending, up 7% from last year. According to a survey by the National Retail Federation, around 72.3 million Americans are expected to shop on Cyber Monday, making it the second-largest shopping event of the year after Black Friday.
A few e-commerce players are expected to benefit the most from Cyber Monday sales:
Hot Retailers
Online behemoth Amazon.com AMZN, which accounts for about one-third of online sales on Cyber Monday, continues to be the hottest retailer. Amazon's Cyber Monday deals, running from Nov. 30 to Dec. 2, include up to 50% off on tech products, such as JBL headphones, along with significant discounts on home goods like Zinus mattresses and Bissell vacuums (read: Amazon ETFs Set to Surge on Q3 Earnings Beat).
Brick-and-mortar chains have also become aggressive in chasing online customers. Walmart’s WMT Cyber Monday event kicked off on Dec. 1 at 5 PM ET for Walmart Plus members and expanded to all customers at 8 PM ET. Walmart Plus members will get 50% off through Dec. 2. A few must-buy Walmart Cyber Monday deals include cooling sheets for $18, $1200 off on a 55-inch Samsung TV and a $50 Emeril Lagasse air fryer.
Target TGT has been running sales since Nov. 29 but started its official two-day Cyber Monday sale on Dec. 1, which will run through Dec. 2. The discounts of up to 50% on tech, 25% on beauty products, and up to 50% on shoes and apparel are the main attractions.
Best Buy BBY kicked off its Cyber Monday event over the weekend with 50% off on TVs, laptops, headphones, tablets, appliances, phones and more. Best Buy has a Value Score of B.
Kohl’s KSS launched its "Cyber Weekend Deals" on Nov. 30, which will run through Dec. 2 in stores and online. The company is offering deals on hundreds of top gifts and free shipping on online orders of $25 or more. Online Kohl’s Rewards shoppers can redeem a $10 off $50 coupon, though exclusions apply.
ETFs on a Roll
While investing in any of these stocks could reward investors this Cyber Monday, a diverse approach in a basket form can also be a great choice. For this, investors can splurge on ETFs that are poised to capitalize on the surge in e-commerce and consumer spending.
Consumer Discretionary ETFs: A Direct Impact
Among the attractive ETF deals, Consumer Discretionary Select Sector SPDR Fund XLY is at the forefront. It is directly linked to consumer spending habits. The fund holds major e-commerce and retail stocks in its portfolio. It has a Zacks ETF Rank #2 (Buy) with a Medium risk outlook (read: 5 Winning S&P 500 Stocks & Their ETFs Since Election).
E-Commerce ETFs: Riding the Digital Wave
Specifically targeting the e-commerce sector, ETFs like the Amplify Online Retail ETF IBUY and the Global X E-commerce ETF EBIZ are in prime position. These funds invest in companies that derive a significant portion of their revenues from online sales, making Cyber Monday a critical event for their performance.
Technology ETFs: The Backbone of Online Retail
Technology ETFs also stand to gain from Cyber Monday sales. As online shopping relies heavily on technology infrastructure, companies providing cloud services, cybersecurity, and payment processing solutions are essential. ETFs like the Technology Select Sector SPDR Fund XLK offer exposure to these vital tech players. XLK has a Zacks ETF Rank #1 (Strong Buy) with a Medium risk outlook.
Logistics and Supply Chain ETFs: Essential for Deliveries
The surge in online orders during Cyber Monday puts the spotlight on logistics and supply chain companies. ETFs focusing on logistics, such as the iShares Transportation Average ETF IYT, which includes courier and delivery services, are likely to benefit from the increased demand for shipping and delivery services. The fund has a Zacks ETF Rank #3 (Hold) with a High risk outlook.
Sustainable and Socially Responsible ETFs: A Growing Niche
An interesting trend is the rise of socially responsible investing. ETFs that focus on companies with strong environmental, social, and governance practices could see an uptick as more consumers prefer to shop from sustainable brands. Funds like the iShares Global Clean Energy ETF ICLN and the SPDR SSGA Gender Diversity Index ETF SHE cater to this niche market. Both ETFs have a Zacks ETF Rank #3.
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Target Corporation (TGT) : Free Stock Analysis Report
Kohl's Corporation (KSS) : Free Stock Analysis Report
Walmart Inc. (WMT) : Free Stock Analysis Report
Best Buy Co., Inc. (BBY) : Free Stock Analysis Report
Technology Select Sector SPDR ETF (XLK): ETF Research Reports
iShares U.S. Transportation ETF (IYT): ETF Research Reports
Consumer Discretionary Select Sector SPDR ETF (XLY): ETF Research Reports
iShares Global Clean Energy ETF (ICLN): ETF Research Reports
Amplify Online Retail ETF (IBUY): ETF Research Reports
SPDR MSCI USA Gender Diversity ETF (SHE): ETF Research Reports
Global X E-commerce ETF (EBIZ): ETF Research Reports
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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.
