It’s a shorter week for Wall Street this week as investors return from Labour Day festivities, but still an eventful one. Fresh earnings are set to arrive from the meme stock god GameStop as well as Vancouver’s athleisure fave, Lululemon.
Investors will also be keeping an eye on reports on producer prices, wholesale inventories, and unemployment reports, and the Fed will be releasing its Beige Book—one of the committee’s most valuable tools for making decisions about the economy—on Wednesday.
Following recent earnings reports, a handful of e-commerce stocks seem favourable for investors right now. Without further ado, here are your weekly stock picks.
E-commerce behemoth Amazon (ticker: AMZN) has less impressive earnings this time around compared to its Covid boom, with net sales falling from 44% in its first quarter to 27% in its second. The future also isn’t looking too bright, reporting growth of only 10% to 16.5% compared to its predicted 23.5%.
But with many investors sell their shares after the new, though, the company is a great choice to buy on the dip right now, being 10% cheaper than its peak last month. Some reasons to consider buying or holding right now include the company’s resiliency against another surge in the pandemic, as well as the fact that, well, it’s Amazon, and it’s not going anywhere soon.
Amazon might be the leader in the e-commerce space on a global scale, but in Latin America’s turf, it’s Argentinian-based Mercado Libre. (ticker: MELI). In fact, the company’s second-quarter earnings revealed e-commerce sales have soared 96% to $1.14 billion—NBD.
Mercado mainly receives its income from countries Argentina, Brazil, and Mexico, which make up 93% of its revenue. “We believe that our business is showing tremendous momentum despite immense volatility in our key markets due to the frequent closing of physical retail across Latin America,” CFO Pedro Arnt said after the earnings call.
Social media leader Facebook’s (ticker: FB) latest earnings revealed that the company had a 47% soar in ad prices and a 56% rise in revenue.
The company’s new venture Facebook Shops, where brands can list their products, has also been taking off, with FB announcing it has already has 1.2 million active stores and 300 million users in traffic every month. Although concerns over Apple’s changes in privacy have made investors cautious, the App Store now has a new feature that allows users to opt-out of sneaky third-party tracking.
Canadian e-commerce goldmine Shopify (ticker: SHOP) has also seen decelerating growth since a push from the pandemic, with recent store sign-ups at 85,0000, down from 145,000 in the same period a year before.
That said, the company reported in July that its gross merchandise volume had soared 40% to $42.2 billion. Shopify’s recent announcement of its new partnership with TikTok, which allows users to tag and link out products in videos, is a promising new venture for the company.
Disclaimer: Market Buzz contributor Shelley Mason has no position in any of the stocks mentioned.
This does not constitute investment advice and is for entertainment purposes only.