Are These The Best E-Commerce Stocks To Watch This Week?
E-Commerce stocks are among the best-performing stocks in the stock market last year. Naturally, this was aided by the global pandemic that has forced many brick-and-mortar establishments to close down during that period. Well, investors looking for undervalued stocks may want to shift their focus back to the sector as the fear of the Delta variant increases by the day. Consumers these days are very willing to pay a small fee to get their items delivered to their doorsteps. After all, they do value the convenience that comes along with e-commerce.
We can see retail giants such as Walmart Inc (NYSE: WMT) taking advantage of this by its recent launch of Walmart GoLocal, a new delivery-as-a-service business. This would help businesses of all sizes to bring their products closer to their customers. Also, it is a strategy to build alternative revenue streams. Safe to say, the shift of commerce to online platforms is here to stay and many companies are aware of this. Those that started the trend such as Amazon.com, Inc (NASDAQ: AMZN) is now one of the largest companies in the world. With all these in mind, would you be interested in a list of four top e-commerce stocks in the stock market today?
Top E-commerce Stocks To Watch This Week
- JD.Com Inc (NASDAQ: JD)
- Pinduoduo Inc (NASDAQ: PDD)
- Chewy Inc (NYSE: CHWY)
- Shopify Inc (NYSE: SHOP)
JD.Com Inc
First, we will be looking at the Chinese e-commerce giant, JD.com. It also provides marketing and display advertising services to third-party merchants, suppliers, and other business partners on its website channels. Despite the regulatory crackdown by the Chinese government, JD stock soared by over 15% within the past week.
On Monday, the company announced its second-quarter earnings report. JD.Com posted net revenues of $39.3 billion for the quarter, representing an increase of 26.2% year-over-year. The strong sales for the quarter can be attributed to its 618 Grand Promotion which also helped the company add 32 million new users. In fact, the number of active customer accounts is now at 513.9 million, up by 27.4% from the same quarter last year.
The company also accelerated its cross-border trade with Thailand by launching the 618 Grand Promotion shopping festival within the country. We saw a record-breaking transaction volume of $53 billion during the festival from June 1 to June 18 this year. Well, the global pandemic has certainly caused travel restrictions which led to growth in cross-border e-commerce businesses. So, companies such as JD.com are taking full advantage of this opportunity. All things considered, would JD stock be a top e-commerce stock to watch this week?
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Pinduoduo Inc
Following that, we have another Chinese e-commerce platform operator, Pinduoduo. The company provides value-for-money merchandise and interactive shopping options. The products you could find on the platform include food and beverage, electronic appliances, bags and shoes, and many more. Well, you get the idea. PDD stock climbed by over 22% on Tuesday’s trading session.
Naturally, the company’s second-quarter earnings report has fueled this movement. Pinduoduo posted revenues of $3.5 billion for the quarter, up by a whopping 89% year-over-year. Also, its operating profit was $309.4 million this quarter. That compares with an operating loss of $253.0 million in the prior year’s quarter.
On the same day, the company announced it would launch a “10 Billion Agriculture Initiative” to face and address critical needs in the agricultural sector. If you have been following the company, you may have known that improving the agricultural and rural communities has been the company’s core strategy since the beginning. With this, the company hopes to train younger talent to set up agri-businesses and improve downstream market access for farmers. So, do you believe that PDD stock will have more room to run?
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Chewy Inc
Chewy is an online seller of branded and private-label pet food and grooming supplies. The company was founded about a decade ago and is now one of the fastest-growing e-commerce sites in the world. As of now, it offers over 1600 brands with its operations in 13 locations. Consumers could access its products and services through either its website or mobile applications.
Recently, the company CEO Sumit Singh shared his vision for Chewy through a CNBC Evolve virtual event. He wants consumers who order dog food and even getting a delivery of cat litter to feel like going to Disney World. He then expanded on the statement by saying, “It’s about these compounding, amplifying experiences that just drives consumers back and builds loyalty over time. I think that’s what we’re really all about.” Besides, he believes that consumers who get a good first impression and experience will feel like making a purchase again.
Chewy also had a strong first quarter to start the year. It reported net sales of $2.14 billion, up by 31.7% year-over-year. Meanwhile, its net income was $38.7 million compared to a loss of $47.8 million in the prior year’s quarter. So, do you think that Chewy will build on its momentum for the remainder of the year? If you do, would you consider investing in CHWY stock ahead of its second-quarter earnings report on September 1?
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Shopify Inc
Lastly, we have the cloud-based, multi-channel commerce platform, Shopify. Through its software, merchants can run their business across all of their sales channels, including web and mobile storefronts, physical retail, and even social media marketplaces. So, merchants will have a single view of their business and customers across all their sales channels which makes the management of products and inventories an easier task.
Have you imagined buying stuff directly through short videos? Well, this could now be a reality after Shopify announced on Tuesday that TikTok users will be able to add shopping tabs through short videos on the app. The shopping tool which is still being tested will be available to merchants in the U.S., U.K, and Canada. Kylie Jenner will be among the first to adopt this new service to feature her Kylie Cosmetic brands. With this, Shopify will be able to extend its reach to even larger audiences.
Not to mention, the company also posted a strong financial quarter last month. Shopify’s revenue came in at $1.12 billion, up by 57% year-over-year. Moreover, it also posted a net income of $879.1 million compared to $36 million for the prior year’s quarter. Given these positive developments, would you consider adding SHOP stock to your watchlist?
