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Is Now A Good Time To Buy Stocks? 3 E-Commerce Stocks To Watch

Do these e-commerce stocks have the potential to rebound to fresh highs?
The post Is Now A Good Time To Buy Stocks? 3 E-Commerce Stocks To Watch appeared…

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3 Trending E-Commerce Stocks For Your May 2022 Watch List

There’s no question that e-commerce stocks were one of the biggest winners in the stock market during the onset of the pandemic. But over the past six months, most of these stocks plummeted as investors worried about the slowdown in their growth in a post-pandemic world. And as consumers start to spend their money on brick-and-mortar stores and travel experiences, it’s natural that e-commerce spending will take a hit. Thus, such a trend could also be contributing to the downtrend in the shares of e-commerce companies.

What’s more, concerns about inflation and rate hikes have been weighing on sentiments in the broader stock market. Could it be a good idea to purchase financially sound companies with attractive valuations at such times? For instance, we only need to look at the likes of Shopify. Despite showing exceptional growth in 2021, Shopify stock has shed more than 80% from its all-time high level. While it may deter some investors from investing in these tech companies, others may be buying the dips. 

Elsewhere, South Korean e-commerce giant Coupang (NYSE: CPNG) has already provided a glimpse of what’s to come earlier today. Its recent first-quarter earnings were impressive, to say the least. Its total revenues were a record $5.1 billion, up 22% year-over-year. Meanwhile, it also recorded the highest gross profit and gross profit margin in Coupang’s history. All in all, it may not be the worst idea to bank on the future of e-commerce stocks. If you share the same sentiment, here are some of the top e-commerce stocks to keep an eye on in the stock market today. 

E-Commerce Stock To Watch In May 2022

eBay

First up, we have the global commerce company eBay. Through its Marketplace platforms, buyers and sellers could connect in more than 190 markets around the globe. Its technology empowers its customers and provides everyone with an opportunity to grow and thrive. No matter who or where they are, the ripple effect of its work creates waves of changes for customers and anyone that uses the company’s platform. Therefore, investors keeping an eye on the e-commerce industry would likely be paying attention to EBAY stock. 

After all, eBay just came off a better-than-expected fiscal first-quarter in 2022. Despite the current macro headwinds, the company remains firm and its long-term strategy is still intact. The company posted revenue of $2.5 billion, down 6% compared to the prior year’s quarter but exceeding most analysts’ expectations. Meanwhile, its Non-GAAP earnings per share were $1.05, also exceeding expectations. Consequently, eBay reassured its investors that the company is focusing on the future with an eye toward sustainable growth. 

On top of that, the company started the month of May with the launch of its third annual Up & Running Grants program. This is to provide support to the U.S. small businesses with the resources they need to scale, grow and thrive in the modern commerce era. eBay recognizes that small businesses are essentially the backbone of its platform. Thus, this program is part of the company’s ongoing commitment to empower them as it continues to find ways to make eBay their platform of choice. All things considered, there appear to be plenty of positives to go around. So, would you consider EBAY stock to be a top e-commerce stock to watch?

EBAY stock
Source: TD Ameritrade TOS

[Read More] 4 Artificial Intelligence Stocks To Watch Right Now

Shopify

Shopify is a software giant that specializes in the e-commerce space. In detail, the company provides a cloud-based, multi-channel commerce platform for small and medium-sized businesses. Merchants leverage its software to run their business across all of their sales channels, including Web and mobile storefronts. Therefore, giving merchants a single view of their business and customers across all sales channels. For these reasons, Shopify has been the commerce platform of choice for many merchants in any environment. 

Last Thursday, the company announced its first-quarter earnings. Shopify’s total revenue for the quarter improved to $1.2 billion, representing an increase of 22% year-over-year and a two-year compound annual growth rate of 60%. Not to mention, its Monthly Recurring Revenue also improved to $105.2 million, up 17% year-over-year. Admittedly, these figures may not be as exhilarating as the early stages of the pandemic. However, it does not change the fact that Shopify is still growing in the right direction.

Furthermore, the company also announced that it has reached an agreement to acquire Deliverr, Inc. For those unaware, this is a fulfillment technology company that provides simplicity and scale to millions of merchants. It also aims to remove the complexity of fragmented supply chain management. As such, Shopify will gain visibility and control of movement along the supply chain while empowering merchants to achieve fast delivery promises across channels. Given these encouraging developments, should investors be paying more attention to SHOP stock right now?

SHOP stock
Source: TD Ameritrade TOS

[Read More] Most Active Stocks To Buy Today? 4 Metaverse Stocks To Watch

Amazon

To sum up the list, it is only right to include one of the largest e-commerce companies in the world, Amazon. The company engages in the retail sale of consumer products and subscriptions around the world. For most parts, it sells merchandise and content purchased for resale from third-party sellers. That said, Amazon is now a tech conglomerate that often pushes its boundaries with a focus on innovation. For example, the company’s Amazon Web Services (AWS) is a comprehensive and broadly adopted cloud platform. 

Although Amazon missed estimates in the recent quarter, AWS has been showing plenty of promise. The cloud computing segment grew 34% annually over the last 2 years, and 37% year-over-year in the first quarter. To say the least, it is the key component that is helping Amazon to weather the storm and move more of its workloads into the cloud. It is also noteworthy that Amazon is still the largest e-commerce company in the U.S. but has only penetrated approximately 13% of overall retail spending. 

Besides that, Amazon introduced “Buy with Prime” in April. This new feature will allow U.S.-based Prime members to shop directly from merchants’ online stores. When shopping with Buy with Prime, checkout is simple and convenient. Prime members will use the payment and shipping information stored in their Amazon account and receive timely shipping and delivery notifications after an order is placed. Overall, there may still be reasons for optimism when it comes to Amazon. With that in mind, could this be an opportunity to invest in AMZN stock at its current valuation?

AMZN stock chart
Source: TD Ameritrade TOS

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The post Is Now A Good Time To Buy Stocks? 3 E-Commerce Stocks To Watch appeared first on Stock Market News, Quotes, Charts and Financial Information | StockMarket.com.

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NY Fed Finds Medium, Long-Term Inflation Expectations Jump Amid Surge In Stock Market Optimism

NY Fed Finds Medium, Long-Term Inflation Expectations Jump Amid Surge In Stock Market Optimism

One month after the inflation outlook tracked…

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March 11, 2024

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NY Fed Finds Medium, Long-Term Inflation Expectations Jump Amid Surge In Stock Market Optimism

One month after the inflation outlook tracked by the NY Fed Consumer Survey extended their late 2023 slide, with 3Y inflation expectations in January sliding to a record low 2.4% (from 2.6% in December), even as 1 and 5Y inflation forecasts remained flat, moments ago the NY Fed reported that in February there was a sharp rebound in longer-term inflation expectations, rising to 2.7% from 2.4% at the three-year ahead horizon, and jumping to 2.9% from 2.5% at the five-year ahead horizon, while the 1Y inflation outlook was flat for the 3rd month in a row, stuck at 3.0%. 

The increases in both the three-year ahead and five-year ahead measures were most pronounced for respondents with at most high school degrees (in other words, the "really smart folks" are expecting deflation soon). The survey’s measure of disagreement across respondents (the difference between the 75th and 25th percentile of inflation expectations) decreased at all horizons, while the median inflation uncertainty—or the uncertainty expressed regarding future inflation outcomes—declined at the one- and three-year ahead horizons and remained unchanged at the five-year ahead horizon.

Going down the survey, we find that the median year-ahead expected price changes increased by 0.1 percentage point to 4.3% for gas; decreased by 1.8 percentage points to 6.8% for the cost of medical care (its lowest reading since September 2020); decreased by 0.1 percentage point to 5.8% for the cost of a college education; and surprisingly decreased by 0.3 percentage point for rent to 6.1% (its lowest reading since December 2020), and remained flat for food at 4.9%.

We find the rent expectations surprising because it is happening just asking rents are rising across the country.

At the same time as consumers erroneously saw sharply lower rents, median home price growth expectations remained unchanged for the fifth consecutive month at 3.0%.

Turning to the labor market, the survey found that the average perceived likelihood of voluntary and involuntary job separations increased, while the perceived likelihood of finding a job (in the event of a job loss) declined. "The mean probability of leaving one’s job voluntarily in the next 12 months also increased, by 1.8 percentage points to 19.5%."

Mean unemployment expectations - or the mean probability that the U.S. unemployment rate will be higher one year from now - decreased by 1.1 percentage points to 36.1%, the lowest reading since February 2022. Additionally, the median one-year-ahead expected earnings growth was unchanged at 2.8%, remaining slightly below its 12-month trailing average of 2.9%.

Turning to household finance, we find the following:

  • The median expected growth in household income remained unchanged at 3.1%. The series has been moving within a narrow range of 2.9% to 3.3% since January 2023, and remains above the February 2020 pre-pandemic level of 2.7%.
  • Median household spending growth expectations increased by 0.2 percentage point to 5.2%. The increase was driven by respondents with a high school degree or less.
  • Median year-ahead expected growth in government debt increased to 9.3% from 8.9%.
  • The mean perceived probability that the average interest rate on saving accounts will be higher in 12 months increased by 0.6 percentage point to 26.1%, remaining below its 12-month trailing average of 30%.
  • Perceptions about households’ current financial situations deteriorated somewhat with fewer respondents reporting being better off than a year ago. Year-ahead expectations also deteriorated marginally with a smaller share of respondents expecting to be better off and a slightly larger share of respondents expecting to be worse off a year from now.
  • The mean perceived probability that U.S. stock prices will be higher 12 months from now increased by 1.4 percentage point to 38.9%.
  • At the same time, perceptions and expectations about credit access turned less optimistic: "Perceptions of credit access compared to a year ago deteriorated with a larger share of respondents reporting tighter conditions and a smaller share reporting looser conditions compared to a year ago."

Also, a smaller percentage of consumers, 11.45% vs 12.14% in prior month, expect to not be able to make minimum debt payment over the next three months

Last, and perhaps most humorous, is the now traditional cognitive dissonance one observes with these polls, because at a time when long-term inflation expectations jumped, which clearly suggests that financial conditions will need to be tightened, the number of respondents expecting higher stock prices one year from today jumped to the highest since November 2021... which incidentally is just when the market topped out during the last cycle before suffering a painful bear market.

Tyler Durden Mon, 03/11/2024 - 12:40

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Spread & Containment

A major cruise line is testing a monthly subscription service

The Cruise Scarlet Summer Season Pass was designed with remote workers in mind.

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38 mins ago

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March 11, 2024

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While going on a cruise once meant disconnecting from the world when between ports because any WiFi available aboard was glitchy and expensive, advances in technology over the last decade have enabled millions to not only stay in touch with home but even work remotely.

With such remote workers and digital nomads in mind, Virgin Voyages has designed a monthly pass that gives those who want to work from the seas a WFH setup on its Scarlet Lady ship — while the latter acronym usually means "work from home," the cruise line is advertising as "work from the helm.”

Related: Royal Caribbean shares a warning with passengers

"Inspired by Richard Branson's belief and track record that brilliant work is best paired with a hearty dose of fun, we're welcoming Sailors on board Scarlet Lady for a full month to help them achieve that perfect work-life balance," Virgin Voyages said in announcing its new promotion. "Take a vacation away from your monotonous work-from-home set up (sorry, but…not sorry) and start taking calls from your private balcony overlooking the Mediterranean sea."

A man looks through his phone while sitting in a hot tub on a cruise ship.

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This is how much it'll cost you to work from a cruise ship for a month

While the single most important feature for successful work at sea — WiFi — is already available for free on Virgin cruises, the new Scarlet Summer Season Pass includes a faster connection, a $10 daily coffee credit, access to a private rooftop, and other member-only areas as well as wash and fold laundry service that Virgin advertises as a perk that will allow one to concentrate on work

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The pass starts at $9,990 for a two-guest cabin and is available for four monthlong cruises departing in June, July, August, and September — each departs from ports such as Barcelona, Marseille, and Palma de Mallorca and spends four weeks touring around the Mediterranean.

Longer cruises are becoming more common, here's why

The new pass is essentially a version of an upgraded cruise package with additional perks but is specifically tailored to those who plan on working from the ship as an opportunity to market to them.

"Stay connected to your work with the fastest at-sea internet in the biz when you want and log-off to let the exquisite landscape of the Mediterranean inspire you when you need," reads the promotional material for the pass.

Amid the rise of remote work post-pandemic, cruise lines have been seeing growing interest in longer journeys in which many of the passengers not just vacation in the traditional sense but work from a mobile office.

In 2023, Turkish cruise line operator Miray even started selling cabins on a three-year tour around the world but the endeavor hit the rocks after one of the engineers declared the MV Gemini ship the company planned to use for the journey "unseaworthy" and the cruise ship line dealt with a PR scandal that ultimately sank the project before it could take off.

While three years at sea would have set a record as the longest cruise journey on the market, companies such as Royal Caribbean  (RCL) (both with its namesake brand and its Celebrity Cruises line) have been offering increasingly long cruises that serve as many people’s temporary homes and cross through multiple continents.

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International

This is the biggest money mistake you’re making during travel

A retail expert talks of some common money mistakes travelers make on their trips.

Published

38 mins ago

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March 11, 2024

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Travel is expensive. Despite the explosion of travel demand in the two years since the world opened up from the pandemic, survey after survey shows that financial reasons are the biggest factor keeping some from taking their desired trips.

Airfare, accommodation as well as food and entertainment during the trip have all outpaced inflation over the last four years.

Related: This is why we're still spending an insane amount of money on travel

But while there are multiple tricks and “travel hacks” for finding cheaper plane tickets and accommodation, the biggest financial mistake that leads to blown travel budgets is much smaller and more insidious.

A traveler watches a plane takeoff at an airport gate.

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This is what you should (and shouldn’t) spend your money on while abroad

“When it comes to traveling, it's hard to resist buying items so you can have a piece of that memory at home,” Kristen Gall, a retail expert who heads the financial planning section at points-back platform Rakuten, told Travel + Leisure in an interview. “However, it's important to remember that you don't need every souvenir that catches your eye.”

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According to Gall, souvenirs not only have a tendency to add up in price but also weight which can in turn require one to pay for extra weight or even another suitcase at the airport — over the last two months, airlines like Delta  (DAL) , American Airlines  (AAL)  and JetBlue Airways  (JBLU)  have all followed each other in increasing baggage prices to in some cases as much as $60 for a first bag and $100 for a second one.

While such extras may not seem like a lot compared to the thousands one might have spent on the hotel and ticket, they all have what is sometimes known as a “coffee” or “takeout effect” in which small expenses can lead one to overspend by a large amount.

‘Save up for one special thing rather than a bunch of trinkets…’

“When traveling abroad, I recommend only purchasing items that you can't get back at home, or that are small enough to not impact your luggage weight,” Gall said. “If you’re set on bringing home a souvenir, save up for one special thing, rather than wasting your money on a bunch of trinkets you may not think twice about once you return home.”

Along with the immediate costs, there is also the risk of purchasing things that go to waste when returning home from an international vacation. Alcohol is subject to airlines’ liquid rules while certain types of foods, particularly meat and other animal products, can be confiscated by customs. 

While one incident of losing an expensive bottle of liquor or cheese brought back from a country like France will often make travelers forever careful, those who travel internationally less frequently will often be unaware of specific rules and be forced to part with something they spent money on at the airport.

“It's important to keep in mind that you're going to have to travel back with everything you purchased,” Gall continued. “[…] Be careful when buying food or wine, as it may not make it through customs. Foods like chocolate are typically fine, but items like meat and produce are likely prohibited to come back into the country.

Related: Veteran fund manager picks favorite stocks for 2024

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