3 E-Commerce Stocks That Could Be the Next Amazon

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I believe e-commerce stocks will continue their rally in the second half of 2024. The likely catalyst for this move will be lower interest rates due to falling inflation. If borrowers have a bit more leeway, it is reasonable to expect online shoppers to come back in full force and start buying in ever-increasing quantities.

Buying the right e-commerce stocks, however, is easier said than done. Companies in the sector have been on a rollercoaster ride in the post-pandemic world, especially if you look past the top e-commerce bets.

There are still e-commerce stocks that are seeing very high growth and are trading at attractive prices. I think these stocks could follow suit Amazon (NASDAQ:AMZN) and dominate the e-commerce space in their regions. Here are three to consider.

MercadoLibre (MELI)

MercadoLibre (NASDAQ:MELIA) is a leading e-commerce and fintech powerhouse in Latin America. The company just celebrated its 25th anniversary and I believe it is well-positioned for another 25 years of growth.

The company’s latest earnings report certainly supports my bullish thesis. Revenue rose 42.7% year over year to a record $4.33 billion, crushing estimates by more than $466 million. Meanwhile, earnings per share of $6.78 beat expectations by more than a dollar.

What’s driving this phenomenal performance? CEO Martin de los Santos highlighted MercadoLibre’s booming marketplace businesses in Brazil and Mexico, which saw gross merchandise volume (GMV) growth of around 30% despite macroeconomic headwinds. Strategic investments in logistics infrastructure and well-executed marketing campaigns are clearly paying dividends. I believe the company’s e-commerce revenues will continue to grow at a particularly high rate.

Mercadolibre’s fintech division also shined, with total payments growing 133% to $1.9 billion thanks to 1.5 million new credit cards issued. While the weak Argentine peso continues to be a drag, overall business looks very healthy to me.

Since e-commerce and digital payments are still in their early stages in Latin America, I am confident that MercadoLibre will maintain this momentum. The stock may seem expensive, but I believe the long-term growth potential for this e-commerce player is still huge.

Sea (southeast)

Sea (NYSE:Southeast), Singapore’s tech darling, posted another strong quarter. The stock has rebounded significantly, but the question is whether the company can maintain that momentum.

In Q1 2024, Shopee achieved record high orders, GMV and revenue, with gross orders increasing by 57% year-on-year. It is clear that Shopee is capitalizing on the e-commerce boom in Southeast Asia, where it has become an online shopping destination for millions of users.

The platform’s integrated logistics arm, SPX Express, delivered 70% of orders in Asia within three days. Increased logistics efficiency reduces costs and increases customer satisfaction.

But I can’t ignore the elephant in the room: growing competition. Shopee may be the market leader now, but rivals like Lazada and Tokopedia are nipping at its heels. There are also concerns about Sea’s ability to maintain rapid growth and profitability as it expands into new markets.

Despite these challenges, I remain optimistic about Sea’s prospects. With Garena and SeaMoney firing on all cylinders and Shopee continuing to gain market share, Sea is well-positioned to ride the digital wave in Southeast Asia. While there may be bumps in the road, I believe Sea has what it takes to become the next e-commerce giant. The stock has rebounded, up nearly 90% year-to-date.

Kaspi.kz (KSPI)

Kaspi.kz (NASDAQ:KSPI) is a fintech powerhouse revolutionizing the way Kazakhs bank, shop, and pay through its elegant Super App. Its Super App also extends to the e-commerce space.

I’ve been following Kaspi closely since it made $17.5 billion Nasdaq debut. The company has 14 million monthly users on its mobile platform. Considering that Kazakhstan has a population of less than 20 million, this innovator has clearly cracked the code of the digital fintech model. Digital payments in Kazakhstan are set to grow to $14.3 billion by 2028, and Kaspi is perfectly positioned to capitalize on this megatrend and soar to new heights. It’s worth noting that the company’s margins are also excellent.

However, KSPI shares have faced some turbulence, with a 7% sell-off following devastating floods that hit Kazakhstan in April. Kaspi is also facing some macroeconomic headwinds that investors need to factor in. The Kazakh central bank is looking to break the oligopoly of the two largest banks (including Kaspi) in the payments space with a new universal system next year.

JPMorgan (NYSE:JPM) sees this cooling as a buying opportunity given Kaspi’s performance to date. The company continues to post strong results, with Q1 revenue up 40% year-over-year. What’s more, analysts remain decidedly bullish, and I’m inclined to agree with them.

As of the date of publication, Omor Ibne Ehsan did not have (directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are the author’s own, subject to the InvestorPlace.com Publishing Guidelines.

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