3 E-commerce Stocks to Watch Nasdaq:ETSY NYSE:SHOP Nasdaq:PYPL

Etsy. Shopify. And PayPal. These are three e-commerce stocks you should watch and possibly buy.

According to projections, the e-commerce industry could grow to as much as $4.8 trillion by 2021. In 2018, the industry was already $2.8 trillion in worth. It is interesting to note that Amazon (Nasdaq: AMZN), the giant, holds about 40% of all online sales.

However, there are other e-commerce giants that are poised to become as substantial, and even possibly make Amazon run. As the e-commerce industry has grown so have those companies, too. Hence, you might want to consider their stocks.

Here are three of those stocks that you should consider if you are not that much enthused about Amazon.

Etsy (Nasdaq: ETSY)

Etsy’s operating model is interesting. The company has successfully demonstrated its solid understanding of the industry with its niche-targeted strategy. Consequently, if you want to make online sales or buys of handcrafted goods, it is the first to come to mind.

For Q1 2019 alone, Etsy grew its gross merchandise sales by about 19%. And for the full year, it is expected to grow revenues by at least 32% compared to its reported figures for 2018. Add to these its impressive sales posting for the same quarter.

This sterling performance has generated positive investors’ sentiments so far, with the share price having been pushed up by over 50% over the past financial year.


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And if you strongly consider that the company is expected to record further growth both in the number of sellers and buyers, you would want to make it an immediate addition to your portfolio.

Shopify (NYSE: SHOP)

Shopify is a key player in the e-commerce stage, having acquired over 800,000 merchants over its 15 years of existence. The company has full-service provisions for businesses of all sizes, of any kind.

In fact, with its Shopify Plus service, Fortune 500 companies are now taking advantage of the benefits the company’s services entail. And for the company, it is already paying off. In fact, for 2019 Q1, it grew its total sales by 50%!

Most especially, it has continued to post impressive growth returns on key business segments such as subscription solutions and merchant solutions. And if it continues its innovative drive, growth is sure.


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The company recently pledged to invest $1 billion to build a network of fulfilment centers for its merchants in the United States.

PayPal (Nasdaq: PYPL)

The growth of PayPal is indirectly connected to that of e-commerce. Presently, PayPal is the favourite payment gateway for most e-commerce businesses. Thus, if there is a company adequately set to become a leader in the e-commerce digital payments space, it will be PayPal.

In fact, it held the growth of e-commerce responsible for its recently reported 22% year over year growth in its total payment value which currently stands at $161 billion.


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And the company’s person-person payment platform, Venmo, which accounted for $21 billion of its total payment value in its most recent posting, because of its increasing popularity, could be a huge driver of growth.

About Oluwa Solademi 17 Articles
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