Top E-commerce Stocks To Buy Right Now
As the stock market continues to drift sideways this week, investors remain cautious about the lack of direction. That said, e-commerce stocks could be picking up pace today. Some parts of the world celebrate November 11 as the biggest shopping day in the calendar year. This was originally started in China by Alibaba Group (NYSE: BABA) back in 2009 and now many countries are adopting it as well. With the pandemic highlighting the convenience of e-commerce, consumers are spending more than ever before through online shopping. So, does it surprise you that companies such as Amazon.com (NASDAQ: AMZN) and Alibaba are some of the largest companies in the world by market capitalization?
Well, it could just be the tip of an iceberg for this multi-billion industry. We have seen industry leaders such as Alibaba expanding internationally with great intent over the past few years. Now, even the likes of JD.Com (NASDAQ: JD) which predominantly has its presence in China are showing intent in overseas investments. Over the coming years, the company will “increase investment in countries that conform to JD’s strategies, no matter if it is on warehousing, logistics, or supply chain,” said Xin Lijun, the newly appointed chief executive of JD’s retail business, according to a CNBC translation. Given these considerations, could the e-commerce space continue to grow? If so, let us take a look at some of the top e-commerce stocks in the stock market right now.
Best 4 E-Commerce Stocks To Buy [Or Sell] Today
- Carvana Co (NYSE: CVNA)
- Shopify Inc (NYSE: SHOP)
- eBay Inc (NASDAQ: EBAY)
- Etsy Inc (NASDAQ: ETSY)
Carvana
To kick start the list, we have the e-commerce platform for buying used cars, Carvana. Through its platform, consumers can research and identify a vehicle by leveraging imaging technologies to have a 360-degree view of the vehicle. Whether it is to obtain financing, purchase a vehicle, or schedule delivery, all these can be done through a desktop or mobile device.
Last Friday, the company announced its third-quarter financial results. It was able to deliver over 110,000 cars to its customers for the quarter, representing a growth of 74% year-over-year. This lays the foundation necessary to achieve the company’s target of selling over 2 million cars per year. To say the least, this is yet another successful quarter for Carvana as it remains on track to meet its target.
On top of that, Carvana also announced a partnership with Hertz in late October. This introduces a new way for customers to save time and money through online car buying and shopping. Hertz will utilize Carvana’s online transaction technology and logistics network to expand vehicle disposition channels. Safe to assume, the collaboration will benefit both companies in the long run. Given these positive developments, would you consider buying CVNA stock today?
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Shopify
Another top e-commerce company to notice now would be Shopify. Essentially, the company provides a cloud-based, multi-channel commerce platform for small and medium-sized businesses. It does so by offering subscription solutions and merchant solutions. So, merchants will get a single view of their business and customers across all of their sales channels. SHOP stock has risen more than 50% over the past year.
Let us start by looking at its latest third-quarter financial report. Shopify announced total revenue of $1.12 billion, an increase of 46% year-over-year. Out of which, Subscription Solutions contributed $336.2 million and Merchant Solutions contributed $787.5 million. Besides that, its gross merchandise value (GMV) was $41.8 billion, representing an increase of 35% compared to the prior year’s quarter.
Well, the company’s successful third quarter was accompanied by a series of exciting developments. For instance, it launched Shopify Markets to allow merchants to enter new markets easily. Not to mention, it rolled out Shopify Balance, the company’s money management product that offers merchants a no-fee money management account with fast access to their cash. All things considered, would SHOP stock be an intriguing opportunity right now?
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eBay
Following that, we will be looking at the global commerce company, eBay. Put simply, the company’s technologies and services give buyers choice and enable sellers to offer their inventory for sale. Most importantly, its platforms are accessible through an online experience, iOS, and Android mobile devices. Impressively, EBAY stock has climbed more than 40% since the start of the year.
Recently, eBay announced a new destination for like-new products, eBay Refurbished. Shoppers can discover refurbished items from brands like Apple, Samsung, Dyson, and many more, all backed with a one or two-year warranty. Fret not, there will be a thorough vetting process that ensures every item meets eBay’s high-performance standard. So, consumers can rest assured that the product they buy will be from top-rated sellers.
Financially, the company has also been firing on all cylinders. During its third quarter, eBay delivered another strong quarter that surpassed most analysts’ expectations. The company reported a revenue of $2.5 billion, an increase of 11% year-over-year. Meanwhile, its GAAP net income was $283 million, or $0.43 per diluted share. Considering its financials, do you believe EBAY stock will have more room to run?
Etsy
Etsy operates two-sided online marketplaces that connect people and buyers and sellers around the world. Its primary marketplace, Etsy.com, is the global destination for creative goods. For sellers, the company offers a range of tools and services that address key business needs. ETSY stock has risen more than 90% over the past year and over 22% just within the past month.
Earlier this month, Etsy announced its third-quarter earnings. The company reported a consolidated GMS of $3.1 billion, representing an increase of 17.9% year-over-year. Coincidentally, the company’s consolidated revenue also grew 17.9% to $532.4 million. This impressive performance shows that millions of buyers who found Etsy during the pandemic are sticking with what the company has to offer.
On top of that, the company’s third-quarter was also filled with exciting initiatives that align with its Right to Win strategy. To list a few, the company began to leverage XWalk, a real-time graph retrieval engine. This allows the company to narrow the semantic gap by relying less on listing taxonomy and more on buyer interests. Furthermore, Etsy also launched “The Etsy House”, an augmented-reality feature that allows buyers to shop in a digital home filled with curated items. Given these considerations, would ETSY stock be a top e-commerce stock to buy now?
