1 Top E-Commerce Stock to Buy Right Now – The Motley Fool

1 Top E-Commerce Stock to Buy Right Now – The Motley Fool

The e-commerce industry continues to grow at an incredible pace, and there’s certainly no shortage of top-notch companies for investors to pick from and capitalize on these market trends. In this segment of Backstage Pass, recorded on Dec. 14, Fool.com contributors, Rachel Warren, Demitri Kalogeropoulos, and Asit Sharma discuss one of the top e-commerce stocks for investors to consider scooping up right now.  

Rachel Warren: The stock I wanted to talk about is Etsy (NASDAQ:ETSY). This is a company I cover pretty frequently. I’m a shareholder of Etsy and for me, one of the industries that I think about top-of-mind when we talk about digital transformation or transformation, as we’re going to talk about here in a minute, can mean so many different things to so many different people and companies.

But one area I think of is e-commerce, because not only is it revolutionizing the way that people shop and the way people buy the daily goods that they’ve relied on forever. But it’s also changing the ability of people to change their financial future.

One of the things I love about Etsy is that it’s predicated on this business model of vintage and unique and specialty and handmade items where you have sellers going on the platform from all over the world to sell these specialty things that you just really can’t find anywhere else.

Not only does that create a lot of opportunity for small business owners, or maybe someone that are finally pursuing their side hustle or lifelong dream of monetizing a business idea they’ve had, but it also provides a really neat way as the consumer to find goods and items that you really can’t find elsewhere.

I love that aspect of Etsy’s business model. The company recently acquired Depop, which is a well-known platform where you can basically resell used clothing. It also acquired a company called Elo7, which is essentially been called the Etsy of Brazil so it’s been making a lot of moves to expand its business.

Shares of the company are up about 30% year-to-date, which actually surprised me. I thought it might be down because the stock has been a bit all over the place. We’ll see where it lands before January. This is another one of those companies that was hailed as a pandemic stock.

But I think the company has proven that it is much more than that. Just a quick look at a couple of metrics. In the first nine months of this year, the company’s revenue grew 45% compared to the first nine months of 2020. Marketplace revenue on the platform was also up by a similar amount, year-over-year net income. In the first nine months of 2021 was up 65%, compared to the same period in 2020.

Active sellers were up 102% year-over-year, in that nine-month period, while active buyers were up 40% year-over-year during the nine-month period. I am loving these figures, I’m loving the fact that not only are more people coming on to list whatever specialty item they want to sell, even as we’re entering a new hopefully phase in the pandemic, that people are also continuing to shop on the platform …….

Source: https://www.fool.com/investing/2022/01/07/1-top-e-commerce-stock-to-buy-right-now/