Etsy, Amazon, EBay: Why E-Commerce Stocks Are Still A Buy

Etsy, Amazon, EBay: Why E-Commerce Stocks Are Still A Buy

Our theme of E-Commerce Stocks – which is comprised of U. S.-based e-commerce companies as well as logistics, and payment players – is up by 25% year-to-date, outperforming the broader Nasdaq-100 which is up by about 17% over the same period. The gains come despite the fact that the brick and mortar retail is opening up following Covid-19, with over half of U. S. adults now vaccinated and Covid cases on the decline. Now, e-commerce was gaining share from physical retail prior to Covid, and investors are likely betting that the pandemic is only likely to bolster the shift to online shopping, given the changes in consumer behavior through months of lockdowns. For example, research firm eMarketer estimates that U. S. retail e-commerce sales will grow by 13. 7% this year and by 15% next year, with consumers expected to spend over $1 trillion via digital retail channels in 2022. [1] Within our theme, eBay (EBAY) stock has been the strongest performer, rising by about 39% year-to-date, driven by stronger demand growth and also due to its lower valuation multiples which have helped it capitalize on the broader rotation from high-growth to value stocks over the last few