11 Best E-Commerce Stocks for Electrifying Returns
2020 is destined to be known as the year of the coronavirus, when "social distancing" and "WFH" became common parlance.
But for investors, we'll also look back at 2020 as a game-changing year for e-commerce stocks. For many of us, the COVID-19 pandemic quickly turned e-commerce from a convenience into a necessity, and changed how we do business, who we shop with and how companies operate.
"Whenever we have a recessionary period, disruption increases substantially. Individuals are losing their jobs and they have to make budget decisions," says David Yepez, lead equity analyst and portfolio manager at Exencial Wealth Advisors in Oklahoma. "What makes this unique is that we're in a recessionary period, but we can't leave the house, a lot of us. So it's even faster."
Online sales accounted for 16% of spending in the U.S. in 2019, with the total dollar number rising from $461 billion in 2017 to $602 billion last year. That upward trend should continue. While people won't always have to shop online out of sheer necessity, the longer people stay indoors for their safety, the greater the chance that new habits will form, bolstering the fortunes of rising e-commerce stocks.
"E-commerce giants have risen to the challenge and largely met consumer expectations," says Jeremie Capron, director of research at New Yor-based index, advisory, and research company Robo Global. "As a result, we expect an increase in adoption, not only during this crisis but also on the other side of it."
Here, then, are the 11 best e-commerce stocks to buy if you want to capitalize on this unprecedented disruption - not just in the U.S., but across the world.
Amazon.com
Market value: $1.15 trillion
Let's start with the most obvious play.
If there was ever a stock tailor-made to profit from the coronavirus outbreak, it's Amazon.com (AMZN, $2,315.99). Just look at how it fits perfectly with today's pandemic-centric lifestyle.
Want to avoid the in April to make sure it could first service its existing customers.
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