Are These 3 E-Commerce Stocks On Your Watchlist Right Now?
While 2020 was a banner year for e-commerce stocks, investors may want to keep an eye on the sector now. After all, with the broader stock market on a high now, investors could be looking for more undervalued stocks. Some would argue that e-commerce stocks fill this role given the year-to-date drop in most of their valuations. This could likely be the case as people assume that demand for e-commerce services could dip amidst the current reopening trade. However, companies in the digital retail business are not sitting idly by, to say the least.
We could look at the likes of e-commerce giants such as Alibaba (NYSE: BABA) for example. Now, BABA stock has been trading sideways for the past few months. Nevertheless, Alibaba is hard at work growing its tech and e-commerce empire now. For starters, the company’s Cainiao logistic arm is currently working with the local government in Hainan, China. Through this partnership, Cainiao will be leveraging its global logistics network and tech to establish Hainan as an e-commerce focused trade center. Moreover, the company also recently formed a new life services division, marking its entry into the on-demand local services and food delivery market.
Meanwhile, conventional e-commerce companies like eBay (NASDAQ: EBAY) are optimizing their operations. As of June 24, the company is selling an 80.01% stake in eBay Korea to Emart for $3 billion. According to CEO Jamie Iannone, this would see the formation of a juggernaut in the Korean e-commerce industry, creating “value for eBay shareholders”. Now, EBAY stock is currently looking at gains of over 35% year-to-date. Overall, the industry continues to improve its services even in the current reopening trade. On that note, here are three top e-commerce stocks to know in the stock market now.
Best E-Commerce Stocks To Watch In July
- Etsy Inc. (NASDAQ: ETSY)
- Peloton Interactive Inc. (NASDAQ: PTON)
- Shopify Inc. (NYSE: SHOP)
Etsy Inc.
To begin with, we will be looking at Etsy. The New-York based e-commerce company primarily focuses on marketing handmade or vintage items as well as craft supplies. Additionally, Etsy’s digital shopping platform also offers a wide array of items spanning numerous categories. This includes but is not limited to jewelry, apparel, home decorations, and furniture. As an emerging name amidst the pandemic last year, Etsy continues to catch investors’ attention. Since its pandemic era low, ETSY stock is still sitting on gains of over 520%. Given its latest move, the company seems intent on keeping up its momentum.
As of last week, Etsy is planning to acquire Elo7, a leading e-commerce name in the Brazilian market today. Through a $217 million all-cash transaction, the company is getting access to Elo7’s operations in the local e-commerce market. In terms of scale, this adds up to a network of 1.9 million active buyers and 56,000 active sellers. The likes of which trade approximately 8 million unique items across the platform. According to Etsy CEO John Silverman, this would mark a strategic play by Etsy. Silverman argues, “The opportunity for Brazil’s e-commerce sector to grow faster than the U.S., we think, is very meaningful over time.”
By and large, Etsy seems to be aggressively bolstering its operations while expanding its addressable markets. This move comes less than a month after its earlier acquisition of fashion resale marketplace Depop back in early June. Given all of this, would you consider ETSY stock a top e-commerce stock to watch this week?
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Peloton Interactive Inc.
Another name to consider in the e-commerce space now would be Peloton Interactive. In brief, the company develops and markets home exercise equipment and related exercise programs. Notably, Peloton currently operates the largest interactive fitness platform globally. According to the company, over 5.4 million members currently use its services. Through in-built displays on Peloton’s treadmills, consumers have a wide array of fitness classes to attend. Generally, this includes indoor cycling, Bootcamp, yoga, and strength training among others.
Arguably, Peloton offers consumers a one-stop and convenient means of exercising from home. Regardless of whether pandemic conditions improve, consumers could continue to rely on said services. With this in mind, PTON stock could be worth keeping an eye on in the current market. After having more than doubled in value over the past year, could it still have room to run? Well, investment bank Truist Financial (NYSE: TFC) seems to believe so. Namely, analyst Youssef Squali recently reiterated his Buy rating on PTON stock and raised his price target to $140. Squali cited Peloton’s “encouraging management commentary” and solid intra-quarter data as possible long-term growth drivers.
Analyst coverage aside, Peloton does not seem to be slowing down anytime soon either. Evidently, the company launched its Peloton Corporate Wellness (PCW) service. Simply put, PCW serves as a means to bring Peloton’s fitness offerings to businesses and organizational settings. According to Peloton, the service will be made available to organizations across the U.S., U.K., Canada, and Germany. All things considered, will you be adding PTON stock to your watchlist now?
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Shopify Inc.
Following that, we have leading e-commerce company Shopify. In short, Shopify operates via its proprietary e-commerce platform, enabling online stores and retail point-of-sale systems. For a sense of scale, Shopify empowers over 1.7 million merchants across 175 countries today. The company also boasts existing e-commerce marketing partnerships with the likes of Google (NASDAQ: GOOGL) and Facebook (NASDAQ: FB). For investors looking to bet on the e-commerce industry now, SHOP stock could be a go-to. As it stands, the company’s shares are currently looking at gains of over 19% in the past month.
On the financial front, Shopify seems to be firing on all cylinders now. In its latest quarter fiscal posted back in April, the company saw green across the board. To highlight, Shopify posted mind-blowing year-over-year surges of 4,104% in net income and 3,781% in earnings per share. Besides, Shopify’s total revenue for the quarter more than doubled over the same time. CFO Amy Shapero cited the company’s “merchant-first business model” as a core contributor to Shopify’s current momentum.
In line with that, the company is currently making significant improvements to its current merchant-focused platform. As of last week, Shopify is implementing “the biggest upgrade” to its Shopify Liquid platform ever. New features and improvements include but are not limited to deep storefront customization, more efficient checkout services, and developer solutions. On top of all that, Shopify seems to be catering to developer-entrepreneurs. The company announced that developers who build for the Shopify App Store will now pay a 0% revenue share for the first $1 million earned annually on the platform. With Shopify refining its operations at this current pace, will you be watching SHOP stock?
