2 eCommerce Stocks to Buy Before the Bear Market Ends
Investing in eCommerce is crucial. A strategy to consider is identifying undervalued companies or sectors that are essential to daily life.
avatar
Mike Sakuraba graduated with double major of English and Economics. Part time writer, part time investor, full time dad. Mike loves writing about technology, sports, and investing.
2023-01-21 11:20

Is it Time to Get Back into eCommerce?
As an industry, eCommerce really took a hit after the pandemic. Why? Well, it isn’t a decline in reliance on these companies, it was more of a decline in consumer demand. This was triggered by macroeconomic weakness, sky-high inflation, and a potential global recession. But if you ask me, I’m never giving up my Amazon Prime membership. There just isn’t any replacement for eCommerce. Thanks to companies like Amazon (NASDAQ: AMZN), anything longer than two days for delivery seems like an eternity.2 eCommerce Stocks to Buy Before the Bear Market Ends
The bottom line is: we need eCommerce. One way to invest is to find beaten-down companies or industries that we rely on in our everyday lives. The eCommerce industry checks off all of these boxes, and the two companies I’ll be discussing even have other businesses like digital payments and gaming. Here are two eCommerce stocks to consider before the sector rebounds.

Sea Limited (NYSE: SE)
I just heard the collective groan from readers. Nobody wants to touch Sea Limited with a ten-foot pole right now, even though the stock was a favourite just a couple of years ago. It has been a rough year for Sea Limited as its stock has fallen by almost 60% over the past 52 weeks. The company has done some major soul-searching and cut a huge portion of its payroll. It has also fallen out of favour with analysts as it has received some recent downgrades from Bank of America and Cowen.

The success of Sea Limited certainly depends on the strength of the global and regional economies. If Southeast Asia is able to bounce back, then the company will likely see improvement in its Shopee and Garena platforms. But by the time the economy is back to strength, stock prices will already have recovered and Sea might not seem like the discount it is today. Many of us are bag-holding Sea’s stock, but have faith in what you invested in the company in the first place. Garena needs another hit game to take the pressure off of Cross-Fire, and Shopee needs to be unique enough to fend off other eCommerce rivals. I think both of these are possible and given the cost-cutting the company has done, it shouldn’t be long until it reaches ample profitability.

MercadoLibre (NASDAQ: MELI)
On the other end of the spectrum is Latin American eCommerce giant MercadoLibre. Despite the bloodbath for tech stocks last year, MELI was able to post a modest gain of 4% over the past 52 weeks. The stock has rebounded by nearly 40% over the past six months, which is certainly a bullish sign for growth investors. MercadoLibre is firing on all cylinders and what I really love about the company is that it has recently entered the digital advertising space, selling valuable real estate on its sites to monetize them even more.

Margins jumped to 11% last quarter and revenue rose by 61% on a year-over-year basis. MELI thoroughly outperformed Amazon and other rivals last year. Unlike Sea, MercadoLibre is in a stronger, more mature position right now. Of the two stocks, I prefer MELI, but I think both can continue to climb higher as the year goes on.


Disclaimer: I have no positions in any of the stocks mentioned. I wrote this article myself, and it expresses my own opinions. I have no business relationship with any company whose stock is mentioned in this article. All information should be independently verified and should not be relied upon for purposes of transacting securities or other investments. See terms for more info.

Rate this article

positive
negative
Louiss
Louiss
1 week ago
Yes, I'm super bullish from the bottom lines
0
Guest
Guest
2 weeks ago
Good article
0
Published On
2023-01-21 11:20

avatar
About the Author
Mike Sakuraba graduated with double major of English and Economics. Part time writer, part time investor, full time dad. Mike loves writing about technology, sports, and investing.


buy-coffee
You've read 1 article in the last year
..thank you for supporting us and for visiting our site. Unlike many other sites, The Dog of Wall Street is available for everyone to read. Our focus is to provide great content for free. Do you like what we are doing? Buy us a cup coffee. It is the fuel that keeps us going..

AI-mazing returns: The top 3 AI stocks to invest in now!
Don't miss out on the opportunity to invest in these cutting-edge companies and be a part of the future of AI.
By Staff | 2 weeks ago

Goldman Sachs Trims the Fat with 3,200 Job Cuts
Goldman Sachs is cutting approximately 3,200 jobs from its core banking and trading units.
By Staff | 4 weeks ago

Tilray Q2 Earnings Leave Investors Wanting More
While Tilray has maintained its leading market share in the recreational cannabis market in Canada and the medical cannabis market in Europe, its Q2 earnings, which included a loss per share of -$0.11 and an adjusted loss per share of -$0.06, have left investors questioning the company's future growth prospects.
By Staff | 4 weeks ago

Qualcomm's partnership with Iridium takes connectivity to new heights
Qualcomm's partnership with Iridium brings satellite-based messaging technology to phones, laptops and other devices, providing new opportunities for connectivity in any location.
By Staff | 4 weeks ago

Hologic's Fiscal Q1 2023 Earnings: A Ray of Hope in a Stormy Year
Hologic has managed to achieve impressive financial results in Fiscal Q1 2023.
By Staff | 4 weeks ago

Why Small and Mid-Cap Stocks Deserve Your Attention
Why valuations make small and mid-cap stocks an attractive option in a potential recession.
By Staff | 4 weeks ago

Get Ready for a Bumpy Year
Despite strong job creation numbers, deeper issues lurk beneath the surface as the Federal Reserve's rate hikes and high inflation threaten to derail the economy.
By Staff | 4 weeks ago