E-commerce stocks have seen explosive growth over the past decade, as online sales have increased exponentially. According to eMarketer, worldwide e-commerce revenue should exceed $5 trillion in 2022, accounting for more than a fifth of total retail sales.
Moreover, total spending is expected to surpass $7 trillion by 2025. Therefore, e-commerce stocks represent a multi-trillion-dollar growth opportunity over the next few years.
Yet, investors have scaled down their exposure to high-growth stocks in response to rising inflation during the latter months of 2021. In addition, the increasingly hawkish stance by the Federal Reserve and the latest talk about multiple rate hikes have scared investors away from high-multiple stocks.
Coupled with the recent echoes of war in Eastern Europe, e-commerce stocks have underperformed broader markets. Whereas the S&P index rose 27% in 2021, the Dow Jones Internet Commerce Index was up only about 3%.
As the market selloff has accelerated since the beginning of 2022, most e-commerce stocks have continued their descent as well. For instance, investors’ darling Shopify (NYSE:SHOP) is down more than 50% since the start of the year.
Nevertheless, we have many reasons to be optimistic about the long-term market outlook for the e-commerce industry. The Covid-19 pandemic has accelerated the move toward online shopping. As a result, e-commerce stocks provide investors with an attractive opportunity to capitalize on this lasting trend in 2022.
With that said, here are seven e-commerce stocks that offer investors significant potential to derive double-digit returns in 2022:
- Amazon (NASDAQ:AMZN)
- Etsy (NASDAQ:ETSY)
- Global X E-Commerce ETF (NASDAQ:EBIZ)
- Mercadolibre (NASDAQ:MELI)
- RH (NYSE:RH)
- Sea Limited (NYSE:SE)
- Target (NYSE:TGT)
E-Commerce Stocks: Amazon (AMZN)
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