Investing in e-commerce? Here are the next Amazon companies to look into
Stocks have become popular with new investors. That’s because a lot of companies are already listed on the market exchange. Instead of buying things from an e-commerce website, some investors who want to grow their money are exerting effort on how they can learn to buy a company.
You see, people are getting wise nowadays. If you are one of those who is looking for great companies to buy right now, we bet you are here because of Amazon and potential e-commerce stocks to invest in. Let’s talk about the next Amazon then.
Amazon (NASDAQ: AMZN) is undoubtedly the strongest e-commerce participant in the technology market, with a share price that has increased by more than five times in the last five years. So looking for the next Amazon-like stocks to invest in is certainly worthwhile.
That's because AMZN is a force to be reckoned with. It took on and shook out conquests in the brick-and-mortar industries. When the company purchased the supermarket chain Whole Foods, for example, it expanded its addressable market and introduced creative, tech strategies to eliminate checkout lines.
COPYRIGHT_WI: Published on https://washingtonindependent.com/ebv/investing-in-e-commerce/ by William Willis on 2021-05-25T01:05:35.691Z
However, cynical investors ignored Amazon for years after the dot-com crash, based solely on its valuation. Their point turned out to be incorrect. The market has now rewarded AMZN by putting a price on its moat.
What are the next exciting companies for investors who believe Amazon is completely priced and has less potential than in the past? There are names that, in our opinion, have the potential to become the next Amazon stock to hit the market. Of course, the e-commerce behemoth remains a buy-and-hold favorite.
In today's digital-centric world, online shopping has become a common occurrence in many people's lives. According to statistics, e-commerce will account for 22% of global retail revenues by 2023. In comparison, global e-commerce retail revenues in 2019 were 14.1 trillion. Furthermore, over 75% of people shop online at least once a month. Investors consider the following statistics about online shoppers as you develop an e-commerce plan.
When people think of B2C companies, they usually think of B2B companies.
B2B e-commerce, on the other hand, is growing: the global B2B e-commerce industry was estimated at $12.2 trillion in 2019, six times the size of the B2C market. B2B businesses should not be afraid to invest in e-commerce. If you are planning to invest in e-commerce, this is one thing to take into account.
You can sell your goods or services to consumers 24 hours a day, seven days a week if you have an online store. There are set store hours, so you can truly remain open 24 hours a day, which can help you increase sales. There are no time or regional limitations when you have an online shop. People may take as much time as they need to decide what to buy and return to your website whenever it is most convenient for them.
There are more benefits when you invest in the e-commerce industry and, for sure, you will learn more about them once you start doing your own research.
The first stock on this list to purchase is Jumia, which has already given investors a fivefold return by 2020. As a result, many believe that this e-commerce site will be the next Amazon in Africa.
In a presentation for the Credit Suisse Technology Conference, Jumia explained its moat: the business has a marketplace, logistics, and JumiaPay all under one name. As a result, it gives users the ease of shopping in one location thanks to its single sign-on and complete integration.
Furthermore, Jumia's platform is flexible and designed especially for African customers. Following that, its interconnected ecosystem could result in higher gross margins.
Apple is the next stock on my buy list. AAPL is now larger than Amazon, with a market cap of over $2 trillion. It may, however, rise more. The stock's competitiveness in the facilities and subscription market is not reflected in its projected price-to-earnings ratio of 32.47.
Furthermore, Apple is likely to have topped smartphone sales this holiday season. The iPhone Mini, for example, is aimed at customers who are reluctant or unable to spend money on an iPhone 12 Pro. Pro sales can also help to boost margins. Apple One, the company's packaged service that comprises iCloud, Apple Music, Apple TV+, Apple Arcade, Apple News+, and the all-new Apple Fitness+, will see increased subscriptions as a result of the increased unit sales (on the Apple Watch).
BABA stock plummeted after the Chinese government suspended the company's linked Ant Group initial public offering (IPO), which had reached a 52-week high of $319.32 in Oct. 2020. Ant was forced to concentrate on its payment business due to the crackdown, which resulted in a reduction in BABA stock. Despite being accused of monopolies, Alibaba remains China's e-commerce behemoth.
For example, the company shattered records during its Singles Day 24-hour event in November, with gross product sales volume topping $74.1 billion. This represents a nearly 100 percent improvement over the $38 billion it received in 2019. In contrast, Amazon's Prime Day in 2020 produced $10.4 billion in revenue.
BABA is currently rated as one of the best stocks to buy by 21 Wall Street analysts, who have an average selling price target of $333.44.
Corelogic specializes in real estate data and analytics. In that sense, it has the potential to become the Amazon of the real estate and mortgage database industry. CLGX stock has a performance ranking that is way above its industry on many metrics. And this chasm is likely to deepen even further.
What is the reason for this? The company recently increased its full-year outlook for 2020 and 2021. Earnings per share (EPS) could reach $4.25, according to CoreLogic. "Strength in property tax processing, insurance & spatial, and international, as well as continued solid housing market fundamentals," the firm said. Those would undoubtedly assist in increasing earnings.