The past year has been nothing short of tumultuous in the rollercoaster world of tech stocks. However, amidst the ripples of volatility, pockets of promise are grabbing the attention of investors, and e-commerce stocks to buy surely top the list.
Many e-commerce enterprises have rendered traditional retail models obsolete, flexing their resilience during the pandemic years. The global e-commerce market is currently tipping the scales at over $4 trillion, and it is poised to keep going. Revenue is projected to top $6 trillion by 2027.
E-commerce stocks for economic recovery represent an enticing proposition. Hence, savvy investors who understand the symbiotic relationship should bank on these top e-commerce stocks standing on the precipice of potential substantial gains.
E-commerce titan Amazon.com (NASDAQ:AMZN) released its Q1 2023 results at the end of March, which bested estimates on both lines. Moreover, it beat top-line estimates by $2.85 billion. Net sales jumped by 9.4%, but results fell short on a few key operating metrics, prompting an after-hours slide in AMZN stock.
Those eyeing the long game in the e-commerce sphere, there’s plenty to like about Amazon following its latest earnings. Its North American retail operations saw a huge jump in profitability, boasting double-digit sales growth year-over-year (YOY). These results were a major improvement from the results that Amazon’s domestic retail has been posting in recent quarters.
There’s been a lot of talk over the array of businesses that Amazon has expanded its tentacles into, but its retail operations still serve as its foundational strength. After a series of blips in recent years, Amazon’s management team has effectively navigated back to a steady course.
JD.com (NASDAQ:JD) is optimizing its profitability strategy, effectively reshaping its product mix and sales channels to bolster operational efficiency. Meanwhile, the company is wisely sidelining new business initiatives that don’t promise long-term value.
Consequently, the Chinese e-commerce titan’s core business exhibits stronger profitability, maintaining and expanding its leadership footprint. Encouragingly, signs of a steady consumption rebound hint at a promising trajectory for the future. A glance at its growth profile shows a 183% bump in EBITDA growth with forward diluted EPS growth at over 27.6%.
Furthermore, the company focuses on specific product categories, enabling the management to effectively synchronize better with business units for swifter responses to fluctuating market conditions. Its effective cost-cutting measures in areas like marketing spend have spurred margin growth, laying the groundwork for effective top-line expansion.
Coupang (NYSE:CPNG) is one of the few e-commerce businesses that continue to etch a robust growth narrative despite the market weaknesses. The firm has consistently delivered a 20% YOY revenue growth rate, extending an impressive record since its IPO in 2021.
In the first quarter 2023, it heralded a 20% revenue surge, propelled by a 5% YOY uptick in active customers to 19 million and a robust 14% YOY increase in total net revenues per active customer to $323.
From a long-term perspective, Coupang has set its sights on a long-term adjusted EBITDA margin of 10%. It will likely experience strong margin expansion in 2023, a potent catalyst for stock upside bolstered by solid revenue growth and operating leverage. As we advance, the South Korean e-commerce market is projected to grow by 7.6% in 2023, contributing 17% to the world’s e-commerce market, positioning Coupang for long-term expansion.
On the publication date, Muslim Farooque did not have (directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines