E-commerce is one of the business sectors with a high potential for upside position and movement this time and for the rest of the months to come.
The stock market is diversified with hundreds of businesses coming from different sectors. The technology sector is among one of the businesses that thrive and continues to survive amid market volatility.
Meanwhile, the e-commerce sector is seen to have significant high upside potential this year. Due to the effect of the global pandemic, many people shifted their way of buying goods and products by using e-commerce platforms.
This change in consumer behavior in buying products and services has helped e-commerce platforms and industries to perform well in the stock market. Their revenues gained and their market cap becomes larger which are positive indicators of stocks to buy and watch.
Top 3 e-commerce stocks to buy and watch. (Photo: Finance Yahoo)
In a published article on the website of The Motley Fool, the following are the 3 best e-commerce businesses and stocks to buy and watch:
SHOPIFY
This e-commerce platform allows people to do business online. They can sell, buy products, and manage their sales online. Shopify reported that its merchants increased during the pandemic. Meanwhile, even if it is impossible to have 70% growth in subscriptions per year, Shopify remains strong in the stock market. The compound growth rate of the e-commerce platform over the past three years has reached 53%.
AMAZON
Amazon is the biggest e-commerce platform in the world today. The market cap of Amazon is $1.4 trillion and it has also nearly doubled its revenue over the last three years. In fact, it generated an amount of $60 billion during the wake of the pandemic. Amazon also has thousands of merchants and they continue to increase in numbers. Recently, they signed a deal to sell Peloton’s fitness products in Amazon stores.
MercadoLibre
One of the fastest-growing e-commerce businesses in the world is Latin America’s MercadoLibre. This is what investors should not overlook because it has around 650 million members who have the potential to buy and sell products. What does it mean? This means a larger cap and bigger revenue.
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