Three promising e-commerce stocks in 2022! Amazon's Q4 performance is expected to reverse the downward trend

It is learned that recently, Faizan Farooque, a well-known foreign stock analyst, announced three e-commerce stocks he is optimistic about in 2022 and explained the relevant reasons, including Etsy, Wayfair and Amazon.

Etsy

Etsy's gross merchandise sales have grown dramatically during the pandemic. Even in the post-pandemic era, Etsy's profitability remains high, with a profit margin of 20% in the first nine months of this year alone.

In the third quarter alone, pickup rates hit 17% as Etsy's active shoppers rose 38% to nearly 96 million, while active sellers jumped 103%.

Etsy's online sales were particularly successful in 2021, with revenue growing 18% to $3.1 billion and the value of goods sold on its platform increasing 18%. Advertising was the second-best performing segment, jumping 28% compared to the same period last year.

For the fourth quarter, Etsy expects to achieve 10% year-over-year growth, with revenue of $660 million to $690 million, and adjusted EBITDA margin is expected to reach approximately 26%.

Wayfair

Wayfair, an e-commerce company that sells furniture and home goods, is also seeing rapid growth in profits.

Wayfair's growth sent its stock soaring last year, but it has slowed in recent quarters due to supply chain issues, but it will regain momentum heading into the holiday season.

Although Wayfair's revenue fell 18% year over year in the third quarter due to inventory shortages, its long-term growth prospects remain strong.

Wayfair has a curated selection of products and warehouses that are ideally suited to handling large-ticket items, which sets them apart from the competition and sets them up well for a strong fourth quarter.

Amazon

Amazon has struggled with sales in previous quarters, but in the fourth quarter, the company is investing heavily in its fleet to ensure that current supply chain challenges don’t disrupt its most critical quarter. To prepare for the influx of customer orders, Amazon is making massive investments in its fleet.

Amazon will expand by adding more drivers and warehouses, as well as aircraft to get mission-critical packages flying faster.

Meanwhile, Amazon's stock has not performed well this year, with a one-year return of only 6.3%. However, Farooque pointed out that Amazon's strong performance in the fourth quarter is expected to reverse this trend.

Editor ✎ Xiao Zhu/

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