15 Best E-Commerce Stocks to Buy Now

MercadoLibre’s payments platform, Mercado Pago, reported having 38 million unique active users in the second quarter. While the company facilitated more than a quarter of total online retail sales in Latin America in 2021, it still has a long runway of growth, given there are an estimated https://forexhero.info/ 300 million digital shoppers in the region. MercadoLibre, Inc. operates online commerce platforms in Latin America. If you’re interested in investing in the internet retail industry, take a closer look at what companies in this industry do and how the stocks have historically performed.

e commerce stocks

Third-quarter results saw worse than anticipated losses, with Sea reporting a loss per share of $0.83, against a consensus estimate of -$0.67, sending the share price tumbling. Sea saw its share price soar over the course of the pandemic. The value of Sea stock rose from around $20 in March 2020 to over $350 in November 2021, an increase of over 750%. Shopify’s share price climbed over the course of the pandemic, rising by over 300% between March 2020 and today’s $1,359.35 share price. It is possible that there may be a few more stocks that belong to the E-commerce subsector or category, and may be missing from the above list.

Take a deeper dive into e-commerce stocks

Unlike its U.S.-based counterparts, MercadoLibre has continued to deliver strong growth in 2022, overcoming headwinds related to 2021 comparisons and the macroeconomic slowdown. Find out how stock lending works, the extra income you could potentially earn and the risks you should be aware of. Plus, compare stock trading platforms that offer stock lending.

Real estate services and investment firm CBRE have researched what leads economies to turn to e-commerce, and found six key drivers, including an urban population, high debit and credit card use and a dominant e-commerce player. The most important reason to buy the stock right now is valuation. This e-commerce leader is trading at its lowest price-to-sales ratio in more than a decade at just five times trailing-12-month sales. However, difficult year-over-year growth comparisons to accelerated online shopping in 2020 and 2021 have sent the stock price down 75% year to date. While it would have been impossible to continue growing subscription revenue at 70% or more per year, Shopify is still posting solid growth. In the second quarter, total revenue increased 16% year over year, representing a compound growth rate of 53% over the last three years.

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Prior to the pandemic, e-commerce was growing by about 15% annually. Founded in 1993 by brothers Tom and David Gardner, The Motley Fool helps millions of people attain financial freedom through our website, podcasts, books, newspaper column, radio show, and premium investing services. Finder monitors and updates our site to ensure that what we’re sharing is clear, honest and current. Our information is based on independent research and may differ from what you see from a financial institution or service provider. When comparing offers or services, verify relevant information with the institution or provider’s site.

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Offer investors a combination of growth and value after the market sell-off. Buying an equal amount of all three stocks in a well-diversified portfolio just might be all the e-commerce exposure a long-term investor needs. Let’s find out a bit more about these three e-commerce stocks. Macy’s stock opened the day at $23.63 after a previous close of $23.38. Macy’s is listed on the NYSE, has a trailing 12-month revenue of around USD$25.7 billion and employs 88,857 staff.

This is more than double the level of merchant users in 2018. As more merchants sign up to use Shopify’s valuable selling tools, it has cemented its brand as a go-to checkout solution. The growth of online shopping is one of the surest megatrends to bet on. Get stock recommendations, portfolio guidance, and more from The Motley Fool’s premium services.

e commerce stocks

Topics may span disruptive tech, income strategies, and emerging economies. Performance is shown on a total return basis (i.e., with gross income reinvested, where applicable). Cumulative avoid this fatal trading mistake return is the aggregate amount that an investment has gained or lost over time. Annualized return is the average return gained or lost by an investment each year over a given time period.

Top E-Commerce Stocks to Buy Right Now

FKnol maintains a limited number of record of stocks, and E&OE. Bookmark this site to track the best performing stocks regularly. Get Started Learn how you can make more money with IBD’s investing tools, top-performing stock lists, and educational content. Sign Up NowGet this delivered to your inbox, and more info about our products and services. WallStreetZen does not provide financial advice and does not issue recommendations or offers to buy stock or sell any security. Overstockcom stock has a consensus Buy recommendation according to Wall Street analysts.

The best e-commerce stocks depend on your portfolio and investment goals — while volatility can be ideal for day traders, long-term investors will want to look to stocks with steadier gains over time. IBD keeps all the key sector news here, from company earnings and expansions to monthly retail sales and features about the future of malls and online shopping. For example, hailing from the Swiss Alps, running shoe retailer On is chasing down its first breakout.

Keep in mind that positive past performance doesn’t guarantee that a stock will continue to rise in the future. Compare online trading platforms by fees, asset types and bonuses to find the best for your investment in e-commerce stocks. International investments may involve risk of capital loss from unfavorable fluctuation in currency values, from differences in generally accepted accounting principles or from social, economic or political instability in other nations. Emerging markets involve heightened risks related to the same factors as well as increased volatility and lower trading volume. The premiums and discounts for funds with significant holdings in international markets may be less accurate due to the different closing times of various international markets.

Shopify Inc. , a commerce company, provides a commerce platform and services in Canada, the United States, Europe, the Middle East, Africa, the Asia Pacific, and Latin America. Many e-commerce stocks saw their share prices increase over the course of the pandemic, and research suggests that online shopping is likely here to stay. But a tighter Chinese regulatory environment could impact the performance of some major online retailers, and the e-commerce landscape may yet shift as the threat if Covid-19 finally recedes. See the best ecommerce stocks to buy now, according to analyst forecasts for the internet retail industry. Shutterstock, Inc. , a technology company, provides quality content, and creative workflow solutions in North America, Europe, and internationally.

MercadoLibre

In the UK, there is no stamp duty on CFD trading, but there is when you buy stocks, for example. You can still benefit if the market moves in your favour, or make a loss if it moves against you. However, with traditional trading you enter a contract to exchange the legal ownership of the individual shares or the commodities for money, and you own this until you sell it again. SEA is one of the top ten holdings in the Aubrey Global Emerging Markets fund. China is at the forefront of social shopping, with 22% of e-commerce sales going through these platforms, compared to 1% in the USA.

Alibaba (BABA)

Overstockcom stock opened the day at $22.60 after a previous close of $22.18. Overstockcom is listed on the NASDAQ, has a trailing 12-month revenue of around USD$2.1 billion and employs 1,350 staff. Chewy stock opened the day at $46.74 after a previous close of $44.81. Chewy is listed on the NYSE, has a trailing 12-month revenue of around USD$9.8 billion and employs 21,300 staff. PayPal stock opened the day at $80.08 after a previous close of $79.10.

PayPal is listed on the NASDAQ, has a trailing 12-month revenue of around USD$27.1 billion and employs 30,900 staff. Shopify stock opened the day at $48.68 after a previous close of $47.33. Shopify is listed on the NYSE, has a trailing 12-month revenue of around USD$5.2 billion and employs 10,000 staff. JD-com Inc Adr stock opened the day at $62.49 after a previous close of $61.38. JD-com Inc Adr is listed on the NASDAQ, has a trailing 12-month revenue of around USD$1 trillion and employs 385,357 staff. EBay stock opened the day at $49.36 after a previous close of $48.93.

E-commerce is a global theme, poised to benefit as expanding broadband and mobile internet penetration coincide with a rising middle class in developing markets. CFDs are leveraged products, which means that you only need to deposit a percentage of the full value of the CFD trade in order to open a position. But with traditional trading, you buy the assets for the full amount.

That sell-off has come as revenue growth has slowed and profits have flipped back to losses. However, Shopify’s long-term potential still looks promising. The company is delivering solid growth, with revenue up 21% on a currency-neutral basis over Black Friday weekend, at $7.5 billion in gross merchandise volume.

Target Corporation operates as a general merchandise retailer in the United States. It also provides in-store amenities, such as Target Café, Target Optical, Starbucks, and other food service offerings. Wayfair became a more cost-effective distribution channel for suppliers, reduced delivery times to customers, and improved its customer shopping experience. Nonetheless, at the time, Wayfair did not produce free cash flow, and therefore it did not qualify for investment.

E-commerce Stocks List Hong Kong 2022 (HKEX)

Expect to find news on Home Depot , McDonald’s , Wal-Mart , eBay and General Motors sales here. IBD will also highlight the best-performing retailers, like Costco , including fundamental and technical analysis. That shift, along with the Federal Reserve’s interest rate hikes, sent e-commerce stocks tumbling from their highs last year. Overstockcom has an average 1 year price target of $45.50, an upside of 105.14% from Overstockcom’s current stock price of $22.18. Pinduoduo has an average 1 year price target of $95.44, a downside of -1.08% from Pinduoduo’s current stock price of $96.49.

On Monday, 4 January, Sea stock fell 10% on the back of the news that Tencent, one of Sea’s biggest investors, is decreasing its stake in the company. Meituan’s shares reached an all-time high of almost HKD450 in February 2021, but saw its share price drop over the course of the year. Last year, Meituan faced a number of challenges, including a third-quarter loss and a RMB3.4bn antitrust fine following a crackdown by Chinese authorities. In 1994, the first online retail transaction took place – a Sting CD sold for $12.48 plus shipping. E-commerce has come a long way since then, with internet sales making up over a third of total retail in Indonesia, Mainland China and the UK.

Social e-commerce

Alibaba cited the increased costs of nearly everything in the U.S., stating they couldn’t get suppliers and sellers on board. It slashed its goal to sign up 1 million local businesses to 2,000. A large number of its U.S. staff left, citing gann square of nine bullying and long working hours. IBD Videos Get market updates, educational videos, webinars, and stock analysis. Click here to downloadJim Cramer’s Guide to Investingat no cost to help you build long-term wealth and invest smarter.

On focuses on industry-disrupting innovations for high-performance running, outdoor, and all-day activities. 42.86% of ecommerce stocks rated by analysts are a strong buy right now. On average, analysts expect ecommerce stocks to rise by 43.82% over the next year. With that much headroom, MercadoLibre has had no problem growing. Annual revenue advanced more than tenfold over the last 10 years through 2021, fueling equally impressive returns for shareholders. The only negative is that profitability has been lacking as management prioritizes spending on marketing and technology to expand the business to more users.

Because the Funds trade during U.S. market hours while the underlying securities may not, the time lapse between the markets can result in differences between the NAV and the trading price. High short-term performance, when observed, is unusual and investors should not expect such performance to be repeated. Goldman Sachs even dedicated a September 2021 briefing note to the question of ‘Is China Investable? The bank’s analysts viewed this regulatory tightening as part of a shift towards sustainable and socially responsible growth, but it could pose a risk to longer-term growth and investment prospects for e-commerce shares. But not all markets have adopted e-commerce so enthusiastically.