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4 Top Ecommerce Stocks You Should See In The Stock Exchange Today
Investing in the stock market lately can be a daunting task. But if you have to bet on something, ecommerce stocks could be a great option in the long run. Why is that? E-commerce enables companies to reach customers in more ways than ever before. Over time, consumers will continue to switch to online shopping for convenience and the ability to research products in real time. In addition, an online shop removes the restrictions on set business hours and consumers can access their products and services at any time. So it can be assumed that this trend will continue and become increasingly popular.
We don't need to look any further than Booking Holdings Inc (NASDAQ: BKNG) to show how e-commerce has affected our lives. As the world's leading provider of online travel, it offers customers around the world easier and better access to travel planning and other services. Imagine how the planning of our trips has changed compared to a few decades ago.
Now, on websites like booking.com and Agoda, consumers can book their hotels or tour packages without having to contact a travel agent. If you believe that ecommerce is the future of trading, then here are some of the best ecommerce stocks to watch in the stock market right now.
Top ecommerce stock to see in May
Alibaba Group Holding Ltd.
To start the list, we have one of the largest e-commerce companies in the world, Alibaba. Just like we have Amazon in the US, some consider Alibaba to be the Amazon of China. Both companies have one thing in common: They are both technology-driven companies that have expanded beyond their core areas of e-commerce. The company is also one of the largest venture capital firms with one of the largest investment companies in the world. Alibaba today announced its highly anticipated earnings report for the quarter and fiscal year ended March 31, 2021.
It's been a historic fiscal year for the company as it reached a milestone of 1 billion active users per year worldwide. Revenue increased 64% year over year to $ 28.6 billion. However, the company recorded a net loss of $ 1.16 billion. This is due to the $ 2.8 billion fine imposed by the Chinese state administration for market regulation under China's Antimonopoly Law. That being said, the overall business delivered strong growth on a healthy foundation.
In other news, Alibaba's Taobao Live announced in April that it would recharge its ecosystem to help distributors and brands continue to thrive on the platform. The aim is to support 2,000 live stream channels and 200 partners in order to significantly increase sales. All in all, with the current price decline, would you invest in BABA shares?
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Next we have the global trading company eBay. The company's technology enables sellers worldwide to put their inventory up for sale virtually anytime, anywhere. EBay's platforms can be accessed through a traditional online experience, mobile devices and APIs (Application Programming Interfaces). Hence, consumers could easily access their platform as long as they have access to the internet. The company's shares have been trading sideways since the beginning of the year. However, those who invested a year ago would see a profit of over 40%. So could EBAY shares continue their upward trend?
Earlier this month, the company announced that there was an option to accept cryptocurrency as a means of payment in the future. In addition, it is looking for ways to bring non-fungible tokens (NFTs) onto its platform. The company is always looking for relevant payment methods so that it doesn't lag behind in this fast-paced world.
A week later, the company finally jumps on the NFT train. Consumers can now purchase NFTs from their broad online marketplace. This reflects an expansion in eBay's digital collectibles business, in line with the rise in popularity of NFTs this year. In this sense, would the EBAY share be a good buy?
Next we have Shopify. It is a multinational technology company focused on e-commerce. In detail, the company offers a cloud-based platform for small and medium-sized companies to operate their digital shop windows. The Shopify platform offers merchants a unified view of their business and their customers across all sales channels.
This enables better product and inventory management, customer relationship building and reporting through an integrated back office. The company announced its first quarter earnings report late last month, lowering analyst expectations.
The company had sales of $ 988.6 million, an increase of a whopping 110% over the previous year. In addition, net income was boosted by an unrealized gain of $ 1.3 billion on its investment in online payments company Affirm (NASDAQ: AFRM), which went public in January. By the end of March, Shopify had distributed $ 2 billion in cumulative funding to merchants through Shopify Capital. This is intended to help empower the rapidly growing dealer base through machine learning. Given these impressive financial figures and innovations, would you buy SHOP shares now?
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The last one on this list doesn't require an introduction. We have the e-commerce giant Amazon. The company offers a range of products and services through its websites. This includes goods and content that are offered for resale from vendors and third parties. Electronic devices are also manufactured and sold. AMZN stock has been on a decline since the beginning of the month after hitting an all-time high in late April. Well, this could be viewed as a retracement and potentially a buying opportunity for investors who believe in the company's long-term success.
Although the company is known for its e-commerce influence, it has expanded its reach to other industries as well. For example, the company recently signed a multi-year deal with the Women's National Basketball Association that will broadcast multiple games live on Prime Video. This is in addition to previous attempts to stream sports content like Thursday Night Football and the Premier League.
Financially, the earnings report for the first quarter is as impressive as you'd expect. Amazon had sales of $ 108.52 billion, a 44% increase over the previous year. Even more outstanding, net income increased 319% from $ 2.54 billion to $ 8.11 billion. Would this be a good time to bet on AMZN stock as Amazon is already one of the biggest names out there along with its fantastic financial results?