Final hours! Save up to 55% OFF InvestingProCLAIM SALE

2 E-Commerce Stocks to Buy in June, 2 to Avoid

Published 06/04/2021, 05:11 PM
Updated 06/04/2021, 06:30 PM
© Reuters.  2 E-Commerce Stocks to Buy in June, 2 to Avoid
IMBIQ
-
FTCHQ
-

E-commerce companies are currently witnessing declining traffic and sales as people return to shopping at brick & mortar stores with the reopening of the economy. While Cars.com (CARS) and iMedia Brands (NASDAQ:IMBI) possess impressive growth potential given their innovative products and services and substantial market reach, conversely, Rakuten (RKUNY) and Farfetch (NYSE:FTCH) might suffer declines in the near term due to their weak fundamentals. Let’s discuss.The e-commerce industry emerged as the backbone of the retail industry last year, generating $4.28 trillion in sales, representing a 27.6% year-over-year rise in 2020. These companies are investing heavily in tech solutions to analyze trends in consumer behavior and improving product filtering options and review sections to provide a personalized shopping experience to their users.

Rising investor optimism in the e-commerce industry is evidenced by the Global X E-commerce ETF’s (EBIZ) 49.8% returns versus the SPDR S&P 500 Trust ETF’s (SPY) 34.1% gains over the past year.

However, with rising brick-and-mortar sales with the reopening of the economy, e-commerce companies have been seeing lower traffic and orders. Therefore, we believe popular e-commerce stocks Cars.com Inc. (CARS) and iMedia Brands, Inc. (IMBI) are well-positioned to gain in the coming months owing to their strong fundamentals and loyal customer base. However, due to declining financials and weak market reach, we think shares of Rakuten Group, Inc. (RKUNY) and Farfetch Limited (FTCH) could continue witnessing corrections in the near term.

Continue reading on StockNews

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.