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4 E-Commerce Stocks You Can Buy and Hold for the Next Decade
It’s no secret that the market has taken a beating thus far this year, and technology growth stocks have had an especially tough couple of months. E-commerce stocks have been no exception, but there are four online marketplaces that I think are still worthy of a long look from investors. In fact, the declining share prices for these stocks, in combination with each company’s strong growth potential, make these four e-commerce standouts particularly attractive options for investors to buy now and hold for at least a decade.
Let’s discover what makes these four stocks — which vary from slower-growth companies with strong cash generation to those with high-flying expansion rates and no profits — so appealing.
Image source: Getty Images.
1. Global-e Online
Since direct-to-consumer (DTC) and international growth is of the utmost importance for many brands and their parent companies, any offer to meld of these two worlds is a wildly valuable proposition. That’s where Global-e Online (GLBE 8.50%) and its cross-border e-commerce solutions steps in. Effectively, this company enables start-ups and large corporations alike to sell to anyone and from anywhere.
Global-e Online offers unmatched localization: It supports sales in 25 languages, 100 currencies, 150 payment types, and offers over 20 shipping carrier options. The company also adjusts to the necessary tax regulations in each region. The ability to offload these major headaches tied to foreign sales means that companies are quickly turning to Global-e Online’s offerings. In the first quarter, the global e-commerce company brought in $76.3 million in revenue, an increase of 65% year over year. Adjusted gross profit was $29.9 million in the same period, an increase of 94% year over year.
GLBE Revenue (TTM) data by YCharts
Global-e offers investors unique ways to profit from worldwide growth, collaborating with Shopify to help its vast customer base expand internationally, and boasting partnerships with big brands like Adidas and LVMH. Trading at 27 times its gross profits, it is the most expensive stock of the four here — but its international presence makes Global-e a fantastic business to buy and hold for the next decade.
2. Etsy
With 95% of its 5.3 million active sellers running shops from their homes, Etsy (ETSY 6.21%) brings personalized, homemade, and handcrafted goods to the masses. Operating through its “house of brands” strategy, Etsy is facing slowing growth year over year — but is undeniably a more substantial business now than it was three years ago.
ETSY Revenue (TTM) data by YCharts
After recording just 5% sales growth in Q1 2022 compared to the year prior, management is now guiding for year over year revenue growth between 2% and 12% in Q2. Due to these declining growth rates and somewhat disappointing guidance, Etsy shares have been punished harshly in 2022.
However, with the company’s 2021 acquisitions of Depop, a peer-to-peer apparel resale marketplace, and Elo7, considered the Etsy of Brazil, the company should soon see its top-line growth rise again as these young