Could These Top E-Commerce Stocks Be Worth Investing In Today?
E-commerce stocks among other retail stocks could be taking center stage in the stock market this week. Notably, this would be thanks to the latest report from the U.S. Commerce Department on October’s retail sales figures. Heading into the holiday season, consumer spending appears to be gaining momentum. This is evident as U.S. retail sales reportedly rose by 1.7% in October. For reference, consensus estimates pointed towards a 1.4% increase. As a result of all this, investors may want to consider the top e-commerce stocks in the stock market today.
At the same time, some of the largest retailers in the world are also reporting their quarterly earnings this week. Earlier today, Walmart (NYSE: WMT) posted solid figures in its fiscal third-quarter earnings. To highlight, the retail goliath saw an earnings per share of $1.45 on revenue of $140.53 billion for the quarter. This tops Wall Street’s estimates of $1.40 and $135.60 billion respectively. Additionally, Walmart also raised its earnings per share guidance for the fiscal year as it strategically navigates global supply chain pressures.
Overall, we could be looking at exciting times ahead for the broader retail and e-commerce industry ahead. With even legacy retailers like Macy’s (NYSE: M) turning towards the digital space, the shift in consumer preferences is apparent. With all this in mind, here are four e-commerce companies making moves now.
Top E-Commerce Stocks To Buy [Or Sell] This Week
- Home Depot inc. (NYSE: HD)
- Sea Limited (NYSE: SE)
- Alibaba Group Holding Limited (NYSE: BABA)
- Amazon.com Inc. (NASDAQ: AMZN)
Home Depot Inc.
First up, we have Home Depot. The company is one of the largest home improvement retailers in the world and has more than 2,000 stores in the U.S., Canada, and Mexico. With over 500,000 associates, the company is committed to serving both DIY users and professionals. It continues to deliver upon its One Home Depot strategy, growing its market share and giving shareholder value by providing its best-in-class customer service. It also continuously improves its online and in-store experience. With that, HD stock is up by over 30% in the past year alone.
Today, the company reported its third-quarter financials. Notably, it reported sales of $36.8 billion for the quarter, a 9.8% increase year-over-year. Net earnings for the quarter were $4.1 billion, or $3.92 per diluted share. “As evidenced by our strong performance in the quarter, our team continues to do an outstanding job of operating with flexibility and agility,” said Craig Menear, chairman, and CEO. “Ultimately, this is what has allowed us to respond to the elevated home improvement demand that has persisted. I would like to extend my sincere appreciation to our team, as well as our supplier, supply chain, and transportation partners, as we continue to navigate this dynamic environment together.” Given this piece of news, will you consider HD stock a buy right now?
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Sea Limited
Sea Limited is a global consumer internet company with headquarters in Singapore. The company has three core businesses across digital entertainment, e-commerce, and its digital payments and financial services known as Garena, Shopee, and SeaMoney respectively. Impressively, Shopee is the largest pan-regional e-commerce platform in Southeast Asia and Taiwan while Garena is a leading global online games developer and publisher. SE stock is looking at gains of over 90% in the past year.
The company has also reported its third-quarter earnings today. Diving in, total GAAP revenue was $2.7 billion, up by 121.8% year-over-year. Total gross profit was $1 billion, up by 147.5% compared to a year earlier as well. Its e-commerce segment contributed to a significant chunk of this quarter’s revenue, at a GAAP revenue of $1.5 billion, increasing by 134.4% year-over-year. Gross orders totaled 1.7 billion, increasing by 123.2% year-on-year.
For scale, this would represent the ninth consecutive quarter of triple-digit year-on-year order growth. The company also reported a gross merchandise value of $16.8 billion, increasing by 80.6% year-over-year. Given the solid financials, would you be buying SE stock?
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Alibaba Group Holding Limited
Alibaba is an e-commerce giant that also provides technology infrastructure and marketing to help merchants, brands, retailers and other businesses grow. In fact, its businesses consist of commerce, cloud computing, digital media, and entertainment. The company will be reporting its September quarter on Thursday before the market opens. Today, the company said that Alibaba Cloud had fully migrated all of Alibaba Group’s systems and operations onto the cloud ahead of the world’s largest shopping festival.
The use of 100% cloud-native technologies during the 11.11 Global Shopping Festival reduced computing resources by 50% for every 10,000 transactions compared to last year. Computing efficiency was also greatly improved with a boost of 20% in technology deployment efficiency and 30% in CPU resource utilization.
This is part of the company’s sustainable initiatives to offer green computing power to meet the exponential demand of its customers for a low-carbon digital transition. Furthermore, Alibaba Cloud uses green technologies such as liquid cooling and wind energy at its hyper-scale data centers. With Alibaba Cloud’s capabilities in cloud computing at center stage, is BABA stock worth investing in?
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Amazon.com Inc.
When it comes to the e-commerce industry, Amazon remains a powerhouse. This would be the case given the vast array of offerings on its flagship digital commerce platform. The likes of which host millions of products that are made by Amazon and its third-party sellers. Because of this, consumers across the globe will likely be turning towards Amazon for their online holiday shopping needs. In turn, it would not surprise me to see investors eyeing AMZN stock today.
For one thing, Amazon does not seem to be slowing down on the operational front anytime soon. Just this week, investors have plenty of news to digest regarding Amazon. Firstly, the company’s health care business, Amazon Care, has landed its first hospitality industry client, Hilton (NYSE: HLT). Through this deal, Amazon will be selling virtual medical services to Hilton in the U.S. Secondly, Bloomberg reports that the company’s “cashier-less” checkout tech is now in service at Sainsbury’s, the U.K.’s second-largest supermarket chain. All in all, it seems like Amazon remains focused on refining its retail offerings while broadening its portfolio. All things considered, will you be jumping on AMZN stock this week?
