4 best ecommerce stocks to watch before September 2021


Are these the best ecommerce stocks to watch this week?

Ecommerce stocks were among the top performing stocks in the stock market last year. Naturally, this was aided by the global pandemic which forced many physical establishments to close during this period. Well, investors looking for undervalued stocks may want to focus on the sector again as the fear of the Delta variant grows day by day. Consumers these days are very willing to pay a small fee to have their items delivered to their doorstep. After all, they appreciate the convenience that comes with e-commerce.

We can see retail giants such as Walmart Inc (NYSE: WMT) by taking the opportunity to recently launch Walmart GoLocal, a new delivery-as-a-service business. It would help businesses of all sizes bring their products closer to their customers. It is also a strategy to create alternative sources of income. Safe to say, the shift from commerce to online platforms is here to stay and many businesses are aware of it. Those who started the trend like Amazon.com, Inc (NASDAQ: AMZN) is one of the largest companies in the world today. With all of that in mind, would you be interested in a list of the top four ecommerce stocks in the stock market today?

The best ecommerce stocks to watch this week

First, we will take a look at the Chinese e-commerce giant, JD.com. It also provides marketing and display advertising services to merchants, suppliers and other third party business partners on its website channels. Despite the Chinese government’s regulatory crackdown, JD stock has climbed more than 15% in 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, an increase of 26.2% year-on-year. The strong sales for the quarter can be attributed to its 618 Big Promotion which also helped the company add 32 million new users. In fact, the number of active accounts receivable now stands at 513.9 million, up 27.4% from the same quarter last year.

The company has also stepped up its cross-border trade with Thailand by launching the 618 Grande Promotion shopping festival in the country. We had a record transaction volume of $ 53 billion during the festival from June 1 to June 18 of this year. Well, the global pandemic has certainly caused travel restrictions which have led to the growth of cross-border e-commerce businesses. So companies like JD.com are taking full advantage of this opportunity. All things considered, would JD stock be one of the best ecommerce stocks to watch this week?

Source: TD Ameritrade CGU

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Pinduoduo Inc

Then we have another Chinese e-commerce platform operator, Pinduo. The company offers good-value merchandise and interactive shopping options. The products that you can find on the platform include food and drink, electronics, bags and shoes, and many more. Well you get the idea. PDD stock climbed more than 22% in Tuesday’s trading session.

Naturally, the company’s second quarter earnings report fueled this movement. Pinduoduo reported revenue of $ 3.5 billion for the quarter, up 89% year-over-year. In addition, its operating profit was $ 309.4 million this quarter. This compares to an operating loss of $ 253.0 million in the prior year quarter.

On the same day, the company announced that it would launch a “10 Billion Agriculture Initiative” to address and respond to critical needs of the agricultural sector. If you’ve been following the business, you may know that improving farming and rural communities has been the core business strategy from the start. Through this, the company hopes to train young talents to set up agribusiness businesses and improve downstream market access for farmers. So, do you think the PDD stock will have more room to function?

e-commerce shares to buy (PDD stock)Source: TD Ameritrade CGU

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Chewy Inc

soft is an online seller of branded and private label pet food and grooming products. The company was founded over a decade ago and today is one of the fastest growing e-commerce sites in the world. At present, it offers more than 1600 brands with its operations in 13 locations. Consumers could access its products and services through its website or mobile applications.

Recently, company CEO Sumit Singh shared his vision for Chewy through a CNBC Evolve virtual event. He wants consumers who order dog food and even have cat litter delivered to want to go to Disney World. He then expanded on the statement by saying, “These are those aggravating and amplifying experiences that only push back consumers and build loyalty over time. I think that’s who we really are.On the other hand, he believes that consumers who get a good first impression and a good experience will want to make a purchase again.

Chewy also had a strong first quarter to start the year. It said net sales of $ 2.14 billion, up 31.7% year-over-year. Meanwhile, its net profit was $ 38.7 million compared to a loss of $ 47.8 million in the previous year quarter. So, do you think Chewy is going to keep up the momentum for the rest of the year? If you do, would you consider investing in CHWY stock ahead of the release of its second quarter results on September 1?

best e-commerce stocks (CHWY stock)Source: TD Ameritrade CGU

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Shopify Inc

Finally, we have the cloud-based multi-channel commerce platform, Shopify. Using 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. Thus, merchants will have a single view of their business and customers across all their sales channels, making product and inventory management easier.

Have you imagined buying stuff straight through short videos? Well, that could now be a reality after Shopify announced on Tuesday that TikTok users will be able to add shopping tabs via short videos on the app. The buying tool under test will be available to merchants in the US, UK and Canada. Kylie Jenner will be among the first to adopt this new service to present her Kylie Cosmetic brands. With this, Shopify will be able to extend its reach to an even wider audience.

Not to mention that the company also posted a strong financial quarter last month. Shopify’s revenue was $ 1.12 billion, up 57% year-over-year. In addition, it also posted net income of $ 879.1 million compared to $ 36 million for the quarter of the previous fiscal year. Given these positive developments, would you consider adding SHOP stock to your watchlist?

best e-commerce stocks (SHOP stock)Source: TD Ameritrade CGU

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.


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