E-commerce stocks remain some of the most enticing stocks for investors in the stock market today. In general, many investors prefer to invest in what they know. Well, e-commerce companies surely fit the bill. After all, the global pandemic has forced many people to utilize e-commerce platforms to purchase essential goods. According to a market research company eMarketer, global e-commerce retail sales rose by 25.7% to $4.2 trillion last year. It even predicts that by 2025, global e-commerce retail sales may reach $7.4 trillion.
Safe to say, e-commerce stocks are in a prime position to capitalize on this long-term growth trend. In fact, even social media companies such as Pinterest (NYSE: PINS) and Facebook (NASDAQ: FB) are jumping on the bandwagon. On one hand, Pinterest offers its users augmented reality (AR) features to improve their shopping experience. On the other hand, Facebook already has Instagram Shops and Facebook Marketplace within its apps. Having said all that, here are the 4 top e-commerce stocks to buy in the stock market today.Best E-commerce Stocks To Buy [Or Sell] This WeekSea Limited
First, we will be looking at Sea. The company’s business segments include digital entertainment, e-commerce, and digital financial services. Shopee is the company’s e-commerce platform that allows users a shopping environment supported by multiple value-added services. SE stock has been on a strong bullish trend this year. It has risen over 80% since the start of the year.
According to Reuters, Shopee is preparing to launch in Poland and is currently recruiting sellers. This expansion into the European e-commerce market would be the first for the company on the continent. However, its gaming arm Garena already has an existing presence in the region. It appears that Poland’s e-commerce market is worth up to $19 billion and with significant room for growth. If this business endeavor is proven to be successful, there will be more opportunities to expand to other neighboring countries.
Financially, Sea has also been firing on all cylinders. During its second quarter, the company’s GAAP revenue was $2.9 billion, an increase of a whopping 158.6% year-over-year. Meanwhile, its total gross profit was $930.9 million, an increase of 363.5% year-over-year. Most importantly, Sea continues to rank first in the Shopping category by average monthly users and total time spent in-app in Southeast Asia. Overall, the reception of the company’s e-commerce platform in its target markets has been mostly positive. So, would you consider investing in SE stock?
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Following that, we have the Chinese e-commerce company, Pinduoduo. Essentially, the company’s services mainly involve connecting agricultural producers to consumers. While most of its competition in the space focuses on consumer discretionary items, Pinduoduo provides daily necessities. Through its mobile-only marketplace, the company currently serves over 738 million monthly active users.
Investors appear to be shifting their focus back to some of the top Chinese stocks as their depressed valuation seems like an opportunity that’s too great to pass on. For instance, we are seeing some signs of recovery as PDD stock has risen over 10% over the past month. After all, the company does have a strong second-quarter earnings report to back this movement. Pinduoduo posted revenues of $3.5 billion for the quarter, up by a whopping 89% year-over-year. Also, its operating profit was $309.4 million this quarter. That compares with an operating loss of $253.0 million in the prior year’s quarter.
Furthermore, it also announced that it would launch a “10 Billion Agriculture Initiative” to face and address critical needs in the agricultural sector. With this, the company hopes to train younger talent to set up agri-businesses and improve downstream market access for farmers. So, would these factors justify a buy call for PDD stock?JD.Com
Another top e-commerce company in focus would be JD.Com. The company mainly operates through two segments, JD Retail, and New Business segment. JD Retail consists of online retail, online marketplace, and marketing services in China. Consumers could shop for electronic products, home appliances, and other general merchandise on its online marketplace. JD stock has climbed over 10% over the past month.
The company announced its second-quarter earnings last month. It posted net revenues of $39.3 billion, up by 26.2% year-over-year. The strong sales for the quarter can be attributed to its 618 Grand Promotion which also helped the company add 32 million new users. In fact, the number of active customer accounts is now at 513.9 million, up by 27.4% from the same quarter last year. These are strong financial numbers that many investors could not ignore given its current price point now.
It is also noteworthy that the company has appointed Mr. Lei Xu as President of JD.com, Mr. Lijun Xin as CEO of JD Retail, and Mr. Enlin Jin as CEO of JD Health International, effective immediately. With this in place, the company CEO, Mr. Richard Qiangdong Liu, will have more time to formulate long-term strategies for the company and mentor younger management for the future of the company. All things considered, would you add JD stock to your portfolio?Best Buy
Best Buy is a provider of consumer technology products and services. In detail, the company specializes in the retail of consumer electronics, home-office products, and appliances. Not to mention, the company has over 1,000 stores across the U.S., Canada, and Mexico. With home improvement spending surging amidst the pandemic, Best Buy’s offerings would be in demand.
Recently, the company launched an e-transportation category online and in select stores. Consumers could choose from e-bikes, scooters, mopeds, and accessories from some of the best names in the industry. Best Buy believes that these transportation innovators will play a significant role in helping people cruise into a new era of commuting.
In addition, we also saw a better-than-expected second-quarter financial update from the company. Its enterprise comparable sales increased by 20% to $11.8 billion. Also, its GAAP diluted EPS increased by a staggering 76% to $2.90. With all these in mind, would you consider BBY stock a top e-commerce stock to buy?