Do You Have These E-Commerce Stocks On Your Radar During Power Hour Today?
At times of volatility, investors in the stock market may be reconsidering their risk appetite. They might even rotate into more defensive stocks. And quite possibly, they could shy away from fast-growing sectors such as e-commerce stocks. This is understandable, as many e-commerce companies do not necessarily have a strong track record of profitability. Nevertheless, it is worth pointing out that the industry has seen rising adoption even before the pandemic. And chances are, consumers who are used to the convenience of shopping online from the comforts of their home will not be fully reverting to their old ways anytime soon.
The e-commerce industry also does not lack exciting developments. For instance, eBay (NASDAQ: EBAY) hosted its investor day earlier this month which outlines the long-term strategy of the company. It introduced the eBay Vault, a secure storage facility and digital marketplace for trading collectibles, with plans to expand into luxury goods. On top of that, eBay also introduced its first digital wallet where customers can proceed from their sales to conveniently purchase their next item.
Meanwhile, Chinese e-commerce giants such as Alibaba (NYSE: BABA) and JD.com (NASDAQ: JD) have seen their share prices heavily beaten down over the past year. This is despite their generally stable financials. Nevertheless, there are hopes that China may be easing off its crackdown on large internet companies. Besides, Alibaba appears to be showing confidence in its own stock as it ramped up its share buyback program to $25 billion. With all said and done, the e-commerce industry is one that will likely thrive over the long term as consumer habits evolve. If you share the same sentiments, then here are some of the top e-commerce stocks in the stock market today.
E-commerce Stocks To Watch This Week
- Walmart Inc (NYSE: WMT)
- Chewy Inc (NYSE: CHWY)
- MercadoLibre Inc (NASDAQ: MELI )
- Sea Ltd (NYSE: SE)
Walmart
To kick start the list, we have the retail giant that needs no introduction, Walmart. Over the past few years, the company has been ramping up its e-commerce presence. It now offers shopping opportunities in both retail stores and through e-commerce platforms. Customers can find an assortment of merchandise and services at everyday low prices. Thus, as more buyers are now stepping outdoors again, Walmart can capitalize on both the rising e-commerce trends while maintaining its retail presence.
Earlier this month, the company announced plans of hiring more than 5,000 technology associates globally this year. This will be part of its expansion plan of Walmart Global Tech. It appears that Toronto, Ontario, and Atlanta, Georgia will be the two new Walmart Global Tech hubs. Well, these locations have a growing tech presence and the company believes that there is an untapped pool of diverse local talent within these areas. Overall, these technology investments would hopefully make the online and in-store experience better for its customers. With that in mind, would you consider buying WMT stock?
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Chewy
Unlike Walmart, Chewy is a pure-play e-commerce company that caters to the pet community. In detail, its brands include A Pet Hub, A&E Cage Company, A Pet’s Life, ABO Gear, and many more. Pet enthusiasts can access the company’s products through its e-commerce platform at amazing prices, every day. With more than 2,000 brands available, Chewy promises to help its customers to find the perfect item for their pets. Thus, shopping for pets has never been easier. That said, sentiment around CHWY stock has not been the best lately, with the stock falling by 20% this year.
So, could its upcoming fourth-quarter and full-year 2021 earnings report turn things around? During the company’s third quarter, its net sales grew to $2.21 billion, up 24.1% year-over-year. Meanwhile, its gross margin of 26.4% expanded 90 basis points year-over-year. This sustained growth shows the soundness of Chewy’s strategies while reflecting the durability of the pet category. As such, it should not be surprising that investors will be on the lookout for CHWY stock ahead of its earnings on March 29, 2022.
MercadoLibre
Following that, we will be looking at the e-commerce giant, MercadoLibre. The company’s presence is largely in Latin America. For those unaware, MercadoLibre enables commerce through its marketplace platform that is designed to provide users with a portfolio of services for commercial transactions. Investors should note that Latin America is a region with more than 635 million people and has one of the fastest-growing Internet penetration rates in the world.
With more than two decades of dominance in the e-commerce industry within the region, MercadoLibre continues to grow despite increasing competition over the years. In February, the company announced its fourth-quarter financial results. Impressively, its unique active users have now reached 82.2 million. Notably, its gross merchandise volume improved to $8.0 billion, representing an increase of 21.2% compared to the prior year’s quarter. Besides, its net revenue continues to increase to $2.1 billion, up 60.5% year-over-year. All in all, MercadoLibre remains a force to be reckoned with in a fast-growing region. Keeping this in mind, is MELI stock a buy right now?
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Sea
As aforementioned, there is increasing competition within the e-commerce space in Latin America. And, one of the main contenders would be Sea’s Shopee. Since its launch in Brazil back in 2019, it has taken the region by storm. Just within two years, Shopee has become the most downloaded shopping app in Brazil. Besides that, Sea also operates a digital payments segment and digital entertainment segment. The company’s Garena platform offers mobile and personal computer online games. Meanwhile, its SeaMoney is seeing increasing adoption among consumers by the day.
Sea started the month of March by announcing its fourth-quarter and full-year 2021 financial results. Its total GAAP revenue for the quarter was $3.2 billion, up 105.7% year-over-year. Out of which, its e-commerce business contributed $1.6 billion, representing an increase of 89.4% compared to the same period last year. Earlier today, Sea said that it will be shutting down Shopee in India, citing global market uncertainties. This came just months after the e-commerce service debuted there. As the company streamlines its operations, should SE stock have a place in your portfolio?
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