After a positive start in January, the S&P 500 has sold off since the start of February and is now down 12.5% over the last year. Given the broader market index dip, it makes sense to start looking to buy some stocks with excellent long-term growth prospects. Data center equi
On March 31, 2023 at 14:36:09 ET an unusually large
$46,926.00K block of Put contracts in Amazon.com
(AMZN) was sold,
with a strike price of $190.00 / share, expiring in 77 days (on June 16, 2023).
Fintel tracks all large options trades, and the premium spent
Advanced Micro Devices (NASDAQ: AMD), Intel (NASDAQ: INTC), and Nvidia (NASDAQ: NVDA) are all expected to release new data center processors this year, but how big is this market opportunity? Check out the short video to learn more, consider subscribing, and click the special off
A California judge has rejected Amazon.com Inc's bid to dismiss the state's antitrust lawsuit accusing the online retailer of illegally forcing merchants to accept policies that result in artificially high prices for consumers.
The S&P 500 was set to end its second straight quarter on a high note on Friday, as evidence of cooling inflation further supported hopes of a softer monetary policy approach from the Federal Reserve in light of recent banking sector problems.
A judge has rejected Amazon.com
Inc's bid to dismiss California's lawsuit accusing the
retailer of violating antitrust law by stifling price
competition, resulting in higher prices for consumers, the
state's attorney general Rob Bonta said on Friday.
(Reporting by Jonathan Stempel in New York)
((jon.stempel@thomsonreuters.com; +1 646 223 6317; Reuters
Messaging: jon.stempel.thomsonreuters.com@reuters.net))
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The month of March proved to be extremely volatile for the U.S. stock market. While the decline in yields and the Fed’s dovish comments ignited a rally early in the month, the failure of several banks and the fear of contagion across the globe led to a series of sell-offs
Wall Street's main indexes gained on Friday after data
showed inflation slowed in February, supporting hopes of a
softer monetary policy approach from the Federal Reserve.
Big tech firms have been cutting back on teams dedicated to analyzing ethical issues around Artificial Intelligence (AI) development. Companies including Amazon AMZN, Alphabet’s GOOGL Google, Meta Platform META, Microsoft MSFT and Twitter have fired several employees dedi
U.S. stocks closed higher on Thursday, with tech stocks extending their recent strong run as fears of a liquidity crisis spilling over in the banking sector eased, giving a boost to investors’ confidence. All three major indexes ended in positive territory.
Evercore ISI analysts upgraded Walmart (NYSE: WMT) in the final days of March from In Line to Outperform (or Moderate Buy). The upgrade accompanied a target price increase from $145 to $160 per share. Apparently, analysts foresee potential/future traffic and margins expanding fo
Below is Validea's guru fundamental report for AMAZON.COM, INC. (AMZN). Of the 22 guru strategies we follow, AMZN rates highest using our P/B Growth Investor model based on the published strategy of Partha Mohanram. This growth model looks for low book-to-market stocks that exhi
Amazon workers at a warehouse in Coventry, central England are to hold six more days of strikes in April in a dispute over pay, a statement from the GMB trade union said on Friday.
The Invesco S&P 500 Top 50 ETF (XLG) was launched on 05/04/2005, and is a passively managed exchange traded fund designed to offer broad exposure to the Large Cap Blend segment of the US equity market.
Real estate has long provided some shelter from economic storms, and real estate investment trusts (REITs) can be a powerful way to grow wealth. That's true even when share prices are being buffeted by economic downdrafts, as REIT dividend payments keep the passive income going w
E-commerce stocks have taken several steps back over the past year as tech names from across the board took a violent tumble. As shares stabilize, I think now could be a good time to go shopping for value.
Undoubtedly, a rate-induced recession and a potential pullback in consumer spending seem to be on the way. While consumers have already reacted to high inflation and a weakening economy, it's tough to tell just how much the battered e-commerce darlings stand to fall as consumers rein in spending.
In any case, let's use
TipRanks' Comparison Tool to get a glimpse of three Strong-Buy-rated e-commerce plays.
Amazon (
NASDAQ:AMZN)
Amazon stock seems ready to move on after enduring a 55% peak-to-trough fall. An overinvestment in capacity, macro headwinds, and rocky leadership from CEO Andy Jassy may still be causes for concern. Regardless, I still view Amazon as one of the most innovative and disruptive companies out there. With layoffs and other cost cuts in the rearview, I think Amazon has a lot of things it can do to reignite investor enthusiasm again, even in the face of recession headwinds. I am bullish.
Management provided cautious guidance, which, I believe, lowers the bar drastically. With inflation and a recession in the cards, it's firms like Amazon that tend to take a spill well before it has a chance to report truly hideous numbers. While Amazon has disappointed in past quarters, I don't think we've seen something truly horrific from the firm yet. I think today's depressed multiples suggest that such a quarter is being priced in.
As Amazon continues to build market share with innovative platforms (think the all-in-one Buy with Prime service, which "allows US-based Prime members to shop directly from participating online stores using the Prime shopping benefits they love and trust"), I'd look for Amazon to be one of the leaders once the market's ready to focus on an economic recovery.
It's hard to tell where Amazon goes from here. A recession hasn't even hit yet. AWS and retail sales could easily continue to drag their feet. In any case, I find it hard to pass up the proven innovator while it's trading at 2.0 times sales, 45% lower than its five-year average. That's too low for a disruptive innovator.
What is the Price Target for AMZN Stock?
Analysts expect big things from the e-commerce behemoth, which remains a Strong Buy with 37 Buys and just one Hold. The
average AMZN stock price target of $136.86 implies 34.2% upside potential.
MercadoLibre (
NASDAQ:MELI)
MercadoLibre is an e-commerce company that operates in Latin America. It's essentially the Amazon for a number of countries in the Latin American region. Like Amazon, MercadoLibre's reach goes well beyond just digital sales. The company has a financial business (payments and lending), a robust ad business, and a logistics division (Mercado Envios). With a long growth runway and a dominant presence in Latin America, I am bullish.
Undoubtedly, macroeconomic headwinds have weighed across all parts of the globe. Still, in its latest quarter (Q4), MercadoLibre posted some impressive results, with
per-share earnings of $3.25, well ahead of the $2.42 estimate. Therefore, even as consumers felt the pinch of a slowing economy, the company managed to power enviable growth rates, thanks in part to its financial services and ads.
Indeed, there are still plenty of opportunities to transition consumers away from using cash. Therefore, as impressive as the $65 billion e-commerce firm is with its online marketplace, it's the fintech business that could help jolt growth and pad margins.
Looking ahead, MercadoLibre still appears to have its foot on the pedal. The company is slated to invest $1.6 billion in Mexico this year into improving its e-commerce capabilities, financial services, and logistics. The money will also go toward marketing.
At 72.5 times forward earnings, MELI stock still looks expensive even though shares are off 37% from their highs. Nonetheless, the stock is a lot cheaper from a historical perspective. MercadoLibre has commanded price-to-earnings (P/E) multiples in the hundreds in the past. You have to pay up for growth. At these levels, I don't think investors are paying up all too much, at least historically speaking. Analysts agree.
What is the Price Target for MELI Stock?
Wall Street loves MercadoLibre, with a Strong Buy rating based on nine unanimous Buy ratings. The
average MELI stock price target of $1,526.67 entails a 20.5% gain from here.
PDD Holdings (
NASDAQ:PDD)
PDD Holdings is a Chinese e-commerce company that took the hardest hit of the names in this piece. At its worst, shares crumbled nearly 89%. Shares eventually recovered but are now back in retreat mode, now down almost 30% from 52-week highs. Though the latest quarter was worrisome, I remain bullish.
Shares took a 14% hit when PDD revealed
disappointing fourth-quarter results. The owner of Pinduoduo and Temu missed on revenue ($5.77 billion vs. $6.025 billion estimate) and posted a slight miss on per-share earnings ($1.21 vs. $1.22 estimate). Moving forward, PDD stock is likely to be a very choppy roller-coaster ride as the Chinese economic recovery continues dragging out.
At 22.9 times trailing price-to-earnings with solid growth ahead (analysts expect 28% revenue growth this year), PDD Holdings may very well be the best bargain of the batch. Still, there are added risks to investing in Chinese stocks. Most notably, delisting is a concern common in any U.S.-listed Chinese stock. Though it's challenging to gauge said risks, I think those comfortable with bearing them could have a shot at an outsized reward.
What is the Price Target for PDD Stock?
Analysts have a Strong Buy rating on PDD, with 11 Buys and one Hold. The
average PDD stock price target of $111.58 implies 46% upside potential.
Conclusion
If the Fed can accomplish its mission (I think that's a likely scenario) and orchestrate a soft landing for the economy, then the recession risk baked into e-commerce plays may be overblown. With recent regional bank failures, the Fed may not need to raise rates as much as initially expected, which could bode well for stocks.
Disclosure
A nearly $15 billion JP Morgan fund is expected to reset its options positions on Friday, potentially adding to equity volatility at the end of a strong quarter for U.S. stocks.
A nearly $15 billion JP Morgan fund is expected to reset its options positions on Friday, potentially adding to equity volatility at the end of a strong quarter for U.S. stocks.
What happened
Amazon (NASDAQ: AMZN) stock was an outperformer on Thursday, rising almost 2% higher against the S&P 500 index's 0.6% gain. This was due in no small part to a dispute between a pair of big rivals concerning a business the company is deeply committed to.