With consumer sentiment on the rise after a prolonged period of economic uncertainty, the recent Black Friday sales and holiday season are expected to boost Q4 sales and revenue for e-commerce companies. The improving economy and high consumer spending create an optimistic outlook for the new year and point to the strength of e-commerce stocks for 2024.
Post-pandemic, online retail is more popular than ever, with almost 80% of Americans shopping online and more than 55% preferring to shop online. Those percentages will inevitably continue to grow with each generation of new consumers. That’s why now is an opportune time to consider top e-commerce stocks for potential gains. Investors should seize the opportunity to explore this sector as it has significant upside potential amid a market that generated $1.09 trillion in sales in 2022 alone.
Here are three amazing e-commerce stocks for 2024 that investors should consider.
Amazon (AMZN)
In under three decades, Amazon (NASDAQ:AMZN) went from a garage startup to the world’s second-largest company by revenue, trailing only behind its rival, Walmart (NYSE:WMT). It has sustained robust growth, defying expectations of a mature enterprise. Amazon’s cloud computing, Amazon Web Services (AWS), and digital advertising segments are pivotal contributors to its expansion. This is favorable for AMZN stock investors as the company’s future growth will not be solely reliant on the retail segment.
Significantly, the company is heavily invested in streamlined processes, logistics software and regional fulfillment networks, resulting in reduced delivery times and improved services. In 2023, Amazon achieved its fastest delivery speeds, attracting more customers, particularly for consumables and everyday essentials.
The company’s ongoing innovations in its fulfillment network aim to enhance efficiency, ensuring it remains a retail stock poised for revenue growth this year. Plus, the tech giant’s dominance in e-commerce suggests significant returns in 2024 and beyond.
Shopify (SHOP)
With its monthly subscription model, Shopify (NYSE:SHOP) secures reliable annual recurring revenue for online stores, fostering customer loyalty.
The company impressed investors with a 25% year-over-year (YOY) revenue increase to $1.7 billion and a 36% YOY rise in gross profit. SHOP stock soared 107% in 2023, reaching $74, showing strong signs of improvement and potential for further growth. Despite currently being at its 52-week high, hitting $100 soon is plausible. The company’s business model, benefiting both Shopify and its merchants, contributes to its success.
While the stock is pricey, it remains one of the top investment choices for e-commerce stocks. Though it’s early to declare Shopify a holiday season winner, it’s on track to be one, and definitely an e-commerce stock for 2024 to pay attention to.
Prologis (PLD)
Numerous experts in the real estate sector offer bold predictions for the 2024 supply chain, with Prologis (NYSE:PLD) among the key real estate companies worth considering. A logistics-focused Real Estate Investment Trust (REIT), Prologis is a direct beneficiary of the e-commerce boom, and one of the top industrial real estate picks in this market.
Many of the positive forecasts for Prologis are based on two key factors. First, an anticipated doubling of private equity real estate funding due to expected interest rate declines. Second, the assumption that the Federal Reserve will be done hiking interest rates and revert to cuts.
Currently, analysts are predicting a one-year target price range of $125 to $157 for PLD stock. With strong financials, Q3 2023 revenue reached $1.99 billion, showing an 8.1% one-year compound annual growth rate (CAGR). Prologis demonstrated robust profitability and effective leveraging, with $33.6 billion in liabilities and $91.9 billion in assets, growing 57.8% and 50.8% YOY, respectively.
With a market cap of $120 billion, Prologis emphasizes high-barrier, high-growth markets, ensuring economic resilience and tenant commitment. The company’s decades-long consistent profitability and a robust three-year revenue growth rate of 13% underscore its financial strength.
On the date of publication, Chris MacDonald held a LONG position in AMZN. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
