Do You Have These Top E-Commerce Stocks On Your Watchlist This Week?
While parts of the world continue to battle the coronavirus pandemic, e-commerce would remain a vital service today. As such, it would make sense that investors are eyeing the top e-commerce stocks in the stock market today. From daily necessities and home electronics to even furniture, the e-commerce industry delivers on most fronts. While shopping for all of this used to be an in-person affair, today’s tech significantly simplifies the process. Namely, consumers now have round-the-clock access to countless stores at their fingertips. When you pair this with most people being homebound throughout the pandemic, it is easy to understand the industry’s current momentum.
Even now, as the U.S. is looking towards the tail-end of the pandemic, e-commerce trends remain strong. For instance, we could look at some of the biggest names in the industry now for a sense of this. E-commerce stocks such as Shopify (NYSE: SHOP) and Amazon (NASDAQ: AMZN) appear to be firing on all cylinders now. On one hand, Shopify reported stellar figures across the board in its latest quarter fiscal. In it, the company more than doubled its total revenue and saw a 3,781% jump in earnings per share year-over-year.
On the other hand, Amazon, despite blowing past the $100 billion quarterly revenue mark recently, continues to press on. This appears to be the case as the company’s Prime Day event just passed. Now, the annual mega sale would serve to benefit Amazon and its investors. Even Jefferies (NYSE: JEF) analyst Brent Thill seems to believe so, maintaining a Buy rating on AMZN stock with a price target of $4,200 a share. Given the current focus on the e-commerce space, here are three making waves in the stock market now.
Top E-Commerce Stocks To Buy [Or Sell] Now
- Alibaba Group Holding Ltd. (NYSE: BABA)
- Wayfair Inc. (NYSE: W)
- Mercadolibre Inc. (NASDAQ: MELI)
Alibaba Group Holding Ltd.
Starting us off today is Chinese e-commerce giant, Alibaba Group. For the uninitiated, most would describe Alibaba as the Amazon of China. If anything, the two companies do dabble in similar industries now, e-commerce empires aside. These include booming divisions in the tech world such as cloud computing and autonomous vehicle development. Despite all of this, BABA stock is currently looking at year-to-date losses. Would it be wise for investors to buy the dip here?
Well, investment firm Susquehanna International Group appears to be leaning towards a yes. In its latest coverage of BABA stock, analyst Shyam Patil reiterated a Buy rating with a price target of $350. This would mark a potential upside of over 65% from its price of $211.06 as of Monday’s closing bell. The reason for this, according to Patil, is because Alibaba still has growth opportunities to grab moving forward. After all, as mentioned earlier, the company does have divisions focused on fast-growing tech industries now.
While Alibaba’s portfolio may be diverse and wide, the company continues to apply the best bits towards bolstering its e-commerce services. Earlier this month, Alibaba announced plans to develop self-driving delivery trucks to optimize its logistic division. Speaking of logistics, the company also updated its existing partnership with ZIM Integrated Shipping Services (NYSE: ZIM) yesterday. As of now, the duo will be extending their cooperation agreement for two more years. Given that ZIM is a global container liner shipping company, this is a strategic play by Alibaba. The move will also extend ZIM’s global services to Alibaba buyers as well. Overall, as the company seeks to expand its global reach, would BABA stock be a top buy for you?
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Wayfair Inc.
Another name to know in the e-commerce space now would be Wayfair Inc. In brief, the Boston-based company markets furniture and home goods on its platform. According to Wayfair, consumers have access to a selection of over 14 million items on this platform from over 11,000 global suppliers. The likes of which, Wayfair delivers via its 56 fulfillment and delivery centers across the U.S., Germany, and the U.K. Now, with the current uptick in home improvement spending, W stock could be on investors’ watchlists. Evidently, the company’s shares have skyrocketed by over 1,000% since its pandemic-era low back in 2020.
Indeed, while the pandemic is responsible for the current momentum in the home-goods industry, Wayfair is not sitting idly by. We can see this as the company recently revealed plans to significantly expand its engineering division. In detail, Wayfair is looking to open three new engineering sites in California, Texas, and Ontario. Over the next year, the company plans to hire 1,000 skilled workers to supplement these expansions, further solidifying its lead in the market. CTO Jim Miller appears optimistic as Wayfair continues to evolve its team “to support the incredible growth of the business”.
On top of all that, Wayfair is also making the most of the hype around Amazon’s Prime Day this year. Through Amazon, Wayfair is currently running its June clearance sale with up to 60% off select wares. Moreover, the company also reported stellar figures in its recent quarter fiscal posted last month. In it, Wayfair saw a 49% year-over-year surge in total revenue for the quarter. This was followed by the company more than doubling its earnings per share and net income over the same time. Given all of this, will you be adding W stock to your portfolio?
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MercadoLibre Inc.
Last but definitely not least, we have MercadoLibre, operator of the largest e-commerce and payments ecosystem in Latin America. For a sense of scale, the company operates in 18 countries including, Brazil, Mexico, and Argentina, among others. In short, MercadoLibre’s online commerce platform offers users a one-stop e-commerce and payments tool experience. The likes of which contribute towards the expansion of the Latin American e-commerce market. With the company’s leading presence in the region, I can understand if MELI stock is in focus now.
For the most part, this appears to be the case as Morgan Stanley (NYSE: MS) recently covered MELI stock. Analysts at the firm appear bullish on MELI stock, reiterating an Overweight rating with a price target of $2,260. Notably, this would indicate a 56% premium on its current price of $1,476.34 as of Monday’s closing bell. In particular, the reason for this upgrade is MercadoLibre’s Pago and Credito fintech operations. MS believes that the company’s focus on mobile wallet engagement and credit growth drivers is a strategic one. Besides, some would argue that digital payment services are the lifeblood of the e-commerce industry, facilitating seamless transactions.
By and large, MercadoLibre continues to dominate the Latin American e-commerce market. This is evident even on the financial front. In its recent quarter fiscal posted in May, the company raked in a whopping $1.38 billion in total revenue for the quarter. To highlight, this marks a 111% year-over-year surge. CFO Pedro Arnt cited strong online consumption and favorable consumer trends as key growth drivers for the quarter. All things considered, would you say that MELI stock is a good investment now?
