3 E-Commerce Stocks (Not Called Amazon) That Should Be Long

Ask 100 investors what the biggest e-commerce stock in the US is and most would answer Amazon (NASDAQ:AMZN). It is very clear.

By 2024, it is expected to generate $248 billion in online sales, $21 billion in retail sales, and $172 billion in third-party vendor fees, for a total of $441 billion, up 12.5% ​​from $392 billion by 2023. It has few competitors with so much money.

Although Amazon is an excellent choice for stocks to own for the long term, it doesn’t hurt to consider owning other e-commerce stocks that are also benefiting from global sales. of the internet.

Additionally, the April 2024 blog post from Shopify (NYSE:IN THE WEEK) estimates that global e-commerce sales will grow from $4.98 trillion in 2021 to $7.96 trillion in 2027, a compound annual growth rate (CAGR) of 8.1%.

If my business can grow by 8% every year, I will be very happy. But I’m wrong. The bottom line is that e-commerce is still a very lucrative business.

Here are three e-commerce stocks from Global X E-commerce ETF (NASDAQ:EBIZ) to ride the second wave.

Williams-Sonoma (WSM)

Williams-Sonoma (NYSE:WSM) is the third largest from EBIZ with a weight of 5.13%. WSM shares are up nearly 50% YTD and 378% over the past five years.

I’ve said for years that Williams-Sonoma is one of the best omnichannel retailers anywhere because it balances its brick-and-mortar and online businesses so well.

In recent years, the furniture and home goods retailer has turned to e-commerce. By 2023, its e-commerce business accounted for 66% of its $7.75 billion in total revenue. That’s much higher than when I first wrote about the stock back in June 2016. At that time, e-commerce was making about 53% of revenue.

What is done for profit?

In 2016, it had an operating profit of $472.6 million, good for an operating margin of 9.3%. In 2023, its operating profit was $1.50 billion, good for an operating margin of 17.3%, 800 points higher.

I can say that e-commerce has done a lot for profit. That’s why WSM remains one of the best e-commerce stocks to buy.

MercadoLibre (TWO)

Free market (NASDAQ:TWO) is the 15th-largest holding in EBIZ with a weight of 3.32%. Shares of MELI are up nearly 9% year to date and 169% over the past five years.

MercadoLibre is a combination of e-commerce and fintech businesses.

In Latin America, that is important because access to banks is much lower than in the US It started in 1999 as MercadoLibre.com. Today, it has one of the top five brands of e-commerce companies in the world. It also has one of the 60 largest technology companies in the world.

Since late May 2013, I’ve been recommending its stock, and even though I’ve become a big fan of Amazon again, I still like what it’s doing in Latin America, which is operating in a tough business environment. America.

At the time, it had $472.6 million in revenue, most of which came from the MercadoLibre Marketplace. Fast forward to 2023. It generated revenue from two sectors: Commerce and Fintech. The former was $2.39 billion in revenue (34%), 41.2% higher than in 2022, while the latter was $4.73 billion (66%), 32.6% higher more than last year.

Part e-commerce, part fintech, full profit machine.

Shopify (SHOP)

Shopify is the 22nd-largest site from EBIZ with a weight of 2.50%. SHOP shares are down nearly 20% YTD and up 79% over the past five years.

Shopify stock was pretty much on a straight path until the end of 2021. Since then, it’s been a lot of misery mixed with little good news. As a result, of the 51 analysts who cover its stock, only 30 rate it a “buy” (59%), with a target price of $76.20, almost 30% higher than it is sold now, so there is hope.

On July 22, CIBC analyst Todd Coupland reiterated his “buy” rating for the stock with a target price of $85, better than the median.

When the company reported its Q1 2024 results in May, President Harley Finkelstein had some optimistic statements about the company’s future. Cantech letter reports Finkelstein’s comments:

“You see the strongest Shopify brand in our history. Our exceptional Q1 performance is a clear testament to our dedication to the new Shopify landscape, our commitment to working with a consistent team, and we are focused on building for the long term to bring growth and profitability.”

I would buy after it reports Q2 2024 results on August 7th.

As of the date of publication, Will Ashworth did not have (either directly or indirectly) any of the compensation conditions mentioned in this article. The opinions expressed in this article are those of the author, who are dependent on InvestorPlace.com Printing Instructions.

On the date of publication, the responsible editor did not have (either directly or indirectly) any conditions of compensation mentioned in this article.