The e-commerce industry has been one of the major beneficiaries of the COVID-19 pandemic. With the whole world forced to stay at home, people are relying solely on e-commerce platforms for their daily needs. Be it groceries, vegetables, electronics, clothes, or lifestyle products, people are using these platforms for their living needs.
The loss for brick-and-mortar stores has meant gains for e-commerce firms that left no stone unturned to make the most out of the opportunity. From providing delivery within hours of placing an order to offering perishable products, e-commerce firms have it all covered.
What does the future hold for e-commerce stocks?
With the countries around the world witnessing a second wave of the pandemic, e-commerce stocks are expected to post robust performance as people continue staying indoors. As the whole world waits for an effective vaccine, e-commerce stocks are having a heyday.
The pandemic has triggered an online shopping boom which is here to stay. Even when the vaccine is out, people might prefer ordering online because of their changing habits with ease and convenience. A report from German market data provider Statista has said that global e-commerce sales are likely to grow to $6.54 trillion by 2022 from $3.53 trillion in 2019.
Amazon.com Inc. (AMZN) is the market leader in the global e-commerce space benefited the most from the pandemic. AMZN’s stock price has surged 72.4% on a year-to-date basis to close Friday’s trading session at $3,195.34.Quite naturally, at the current price level, everyone can’t afford to buy this stock. However, there are other smaller players like Sea Limited (SE), Vipshop Holdings Limited (VIPS), and Jumia Technologies AG (JMIA) that can help to ride the e-commerce wave pretty successfully. Each of these e-commerce stocks has gained at least 80% year-to-date and holds significant growth potential.
Sea Limited (SE)
Singapore-based SE is an e-commerce and video gaming firm which was established in 2009 and is focused on the Southeast Asian market. Its platform offers digital finance, e-commerce, and digital entertainment services. SE’s financial services unit is called SeaMoney; the e-commerce business is known as Shopee, and the entertainment unit is called Garena.
In the third quarter, SE’s revenue nearly doubled year-over-year to $1.2 billion, as the pandemic increased adoption of its e-commerce services. Shopee’s revenue surged 173.3% to $618.7 million. Gross orders rose 102.7% to 741.6 million as people feared stepping out due to the pandemic. According to…
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