Pandemics have changed the behavior of all kinds of human beings, especially the way we buy things. Due to the strict blockade, merchants and customers needed to be more creative than they would otherwise be. As a result, global e-commerce sales are expected to exceed $ 5.5 trillion this year.
According to eMarketer, $ 5.5 trillion seems like a big number, but it’s only about one-fifth of total retail sales. So there are still many opportunities for an innovative e-commerce business.
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These three companies are leading the move from physical stores, making it easier for independent merchants to enter large international markets. Their business is showing signs of success, but their stock price has recently been dumped. That’s why they can make great additions to your portfolio.
StoneCo
StoneCo (STNE -2.34%) Share peaked in July last year and has since fallen by more than 80%. Brazil’s e-commerce stocks have surged recently in response to better-than-expected fourth-quarter earnings reports, including the remaining rosy outlook for 2022.
StoneCo offers financial technology solutions that enable Brazilian merchants to sell their products through stores, websites, and mobile devices. In the fourth quarter, the company set a new record by adding 377,700 new customers. In 2021, the total number of clients actively using StoneCo’s payment services increased by 128% to 1.8 million.
StoneCo did more business last year, but net income plummeted 79% year-on-year to just R $ 203 million. Last year, the company merged with Linx, a provider of retail software solutions with over 70,000 clients. The new software business was a stumbling block to revenue that would probably never happen again this year.
Adding Linx clients should enhance the company’s payment processing services and vice versa, but managing them under the same umbrella didn’t work as expected. Recently, StoneCo has hired a new management team to manage its software business. This will be reported as a separate business segment in the future.
Global-E Online
Global-E Online (GLBE -2.57%) After the company’s stock market debut in May last year, the stock price soared. Unfortunately, the share of international e-commerce professionals was hit hard in the second half of 2021 and most of 2022.
While today’s e-commerce solutions make it easy for customers around the world to see your product, cross-border payments and deliveries are still very difficult for most of the world’s small merchants. Global-E Online’s services enable cross-border direct-to-consumer e-commerce, and demand has peaked.
Last year, the total amount of products sold with the support of Global-E surged 87% year-on-year. But for just $ 1.45 billion, there’s definitely plenty of room for the company to grow. In the fourth quarter, the company signed with the first Australian merchant and the partnership in Japan has just begun.
Strategic partnership with Shopify 2022 could be another banner year for Global-E Online. The company is onboarding Shopify-based merchants. FIGMcLaren Formula 1 Team, and gapThe latest collaboration with Kanye West.Cartier and some luxury brands LVMH Umbrella also launched an international campaign in the fourth quarter with the support of Global-E.
Amazon
loss Amazon (AMZN 0.15%) Since peaking last summer, the accumulation of shareholders has not been as serious as Global-E Online and StoneCo. At recent prices, American e-commerce giants have fallen about 13% from their peak in November.
Depending on how you look at it, inventory is likely to be significantly cheaper. Earlier this month, America’s largest online retailer announced a 20: 1 stock split.
Theoretically, a stock split should not lead to significant profits or losses for shareholders. Simply increasing the number of issued shares does not change the value of the underlying business. However, in reality, the split is a sign of confidence that drives investor optimism and often leads to significant profits. The split makes popular stocks like Amazon more accessible to individual investors who can raise prices.
It’s easy to see why Amazon is confident enough to split each existing share of its stock into 20 equal parts. The global supply chain bottleneck that has plagued retailers this year has been mitigated by early purchases of Amazon, which was completed in the fourth quarter of 2021.
Inflationary pressures are currently squeezing e-commerce profits, but Amazon’s revenue growth isn’t stopping. This is because Amazon Web Services (AWS) generates about three-fifths of the company’s operating profit. Cloud computing is unaffected by supply chain issues and inflation, but much less sensitive than retailers.
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