Mar 12, 2021 (StockMarket.com via COMTEX) -- Should You Keep Your Focus On These Top E-Commerce Stocks?
At the height of the coronavirus pandemic, most e-commerce stocks reaped exponential growth as lockdowns encouraged customers to engage more in online purchases. As we slowly shift to a post-pandemic recovery phase, some investors have rebalanced their portfolio onto reopening stocks . This has certainly shifted perceptions around e-commerce stocks. After all, it is reasonable to ponder upon future growth rates after the pandemic.
This week, we saw South Korean e-commerce giant Coupang ( NYSE: CPNG ) surged 40% in its market debut Thursday on the New York Stock Exchange. The company had priced its shares at $35 a share, above its target range of $32 to $34. Following the huge demand for its shares, CPNG stock began trading at $63.5 per share. That signaled confidence among investors in the company, and the e-commerce sector in general.
Now, the $1.9 trillion COVID stimulus package has received approval from Congress. It's safe to assume that top e-commerce stocks are likely to benefit from the cash injection. The new round of stimulus checks could potentially drive consumers to splurge on discretionary items on e-commerce platforms. If you believe the stay-at-home economy is here to stay, do you have a list of the best e-commerce stocks to buy this month?
Best E-Commerce Stocks To Buy [Or Sell] In March 2021
JD.com Inc. ( NASDAQ: JD )
Shopify Inc. ( NYSE: SHOP )
Etsy Inc. ( NASDAQ: ETSY )
Amazon.com Inc. ( NASDAQ: AMZN )
JD.com Inc. (JD)
JD.com Inc. is one of the few companies that live through a rags-to-riches fairy tale. Started out as a single unit store in Beijing's electronic bazaar, today it has evolved into one of the e-commerce giants in China and giving Alibaba Group ( NYSE: BABA ) a run for its money. The company recently released its financial statements for Q4 2020, Revenue came in 31% higher from a year ago to $34.4 billion. "During this quarter, JD continued its strategic transformation into a supply chain-based technology and service company with increasingly diversified sources of revenues," said Chief Executive Richard Liu.
Looking to consolidate its capability as a worthy competitor to Alibaba, JD has also secured strategic partnerships with other technology giants like Walmart ( NYSE: WMT ), Alphabet ( NASDAQ: GOOGL ), and Tencent Holdings ( OTCMKTS: TCEHY ). In order to reduce operation costs, JD acquired Kuayue-Express, a delivery service provider. Such move will accelerate the future growth of JD's logistic business unit, where not only it improves its supply chain operation but also implement cloud-based data analytics.
Despite sliding nearly 15% from its all-time high from its level in February, it's important to note that JD's growth story remains intact. It's important to note that the company's revenue grew respectably even after China recovered from the pandemic. This suggests that the online boom may be here to stay. Considering all these, do you think JD stock is enticing enough for investors?
Shopify Inc. (SHOP)
Shopify Inc. provides tools for businesses to manage their online presence. Its platform and services focus on delivering a better shopping experience for consumers. Like many tech stocks, SHOP stock has fallen by over 20% since the peak in mid-February. With SHOP stock rising 5% on Thursday, could investors finally be breathing a sigh of relief?