3 amazing e-commerce stocks worth buying now

When you stop to think about the long-term trends that will produce the most profitable stocks, the rise of e-commerce is at the top of the list. Online shopping is one of the most popular online activities in the world, and the growth of this industry over the last few years has been nothing short of stunning. There is no indication that e-commerce will slow down any time soon, as global e-commerce retail sales reached $4.28 trillion in 2020 and are expected to reach $5.4 trillion in 2022. All this adds up to the thesis that shares of companies at the forefront of the e-commerce revolution are included in every development-oriented portfolio.

Consider some of the advantages associated with e-commerce. For example, companies can go to market very quickly without large capital outlays, reach customers around the world, and use data to deliver better customer experiences over time. While there are many e-commerce companies to choose from, given the industry’s growth, there are certain companies that really stand out as smart shopping right now. Let’s take a look at 3 amazing e-commerce stocks worth buying right now.

MercadoLibre (NASDAQ:MELI)

One of the most noteworthy features of e-commerce is that it is growing all over the world, not just in the United States. Countries such as Brazil, Argentina, Colombia and Mexico are waiting for opportunities in the e-commerce space as consumers in these countries continue to appreciate the convenience and cost-effectiveness of online shopping. This is the main reason why MercadoLibre is a resource worth considering. It is a company enabling e-commerce in Latin America through its marketplace platform, which aims to provide users with a portfolio of services to facilitate commercial transactions.

MercadoLibre stock has been a huge hit in 2020, but it’s been a quiet year so far thanks to sell-offs in the growth space. Investors should view recent weakness as a buying opportunity as the company is perfectly positioned to take advantage of accelerating digital commerce trends in Latin America. The company’s diversified business model includes e-commerce with payment solutions, advertising services, online store management services and third-party logistics. MercadoLibre reported first quarter earnings where revenue reached $1.4 billion, up 158.4% year over year, and total payment volume reached $14.7 billion, up 129.2% year over year to the year, which are impressive numbers for a stock that loses value every year.

Global-E Online Ltd (NASDAQ:GLBE)

It’s an e-commerce company that went public in May and is clearly attracting investor attention given its recent strength. The company’s shares are up over 127% since its debut, and it’s probably one of the most intriguing IPOs worth checking out in 2021. Global-E Online offers a platform that helps accelerate the global, cross-border growth of direct-to-consumer e-commerce. As we mentioned earlier, e-commerce is a global market, and the ability to effectively promote products to customers outside the company’s home country is crucial.

The Global-E platform can help companies overcome challenges such as language barriers, currency conversions, and international compliance regulations, among others. The ability to increase international traffic conversions and sales is something that should be of interest to every e-commerce company, and that’s where the appeal of the Global-E platform lies. Even Shopify took a 6.5% stake in this Israeli company, confirming that they can achieve something big. The latest earnings results look promising, as the company reported first-quarter revenue of $46.2 million, up 134% year-over-year, and GMV of $267 million, up 133% year-over-year.

Stitch Fix (NASDAQ:SFIX)

These often overlooked e-commerce stocks have quietly surged over 25% in the past month and are now the next potential buy. Stitch Fix is ​​an online personalized styling company that offers clothing and accessories for both male and female customers. What’s unique about this company is that it uses recommendation algorithms and data analytics to personalize clothing items for its customers based on their individual size, budget and style.

We know how important artificial intelligence will be in the next decade, and a company that can combine this type of technology with e-commerce has great growth potential. Stitch Fix recently reported strong third-quarter earnings that included net revenue of $535.6 million, up 44% year-over-year. It is also worth noting that the number of the company’s active customers increased by 20% year-on-year in the third quarter, which is a healthy signal for the growing company. Keep an eye on the e-commerce situation, especially if we continue to see strength in the retail sector.

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