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The Black Friday-Cyber Monday weekend has been a major event in the retail industry for years. In the weeks leading up to that weekend, consumers often avoid spending money in hopes of being able to make purchases at cheaper prices. With that in mind, companies exposed to the retail industry should receive a lot of attention over the next couple weeks. Here are three e-commerce stocks to put on your Cyber Monday shopping list.
One of the largest e-commerce companies in the world
No e-commerce article can be written without mentioning Shopify (TSX:SHOP)(NYSE:SHOP). The company holds the second-largest share of the massive American online retail industry. It’s not unreasonable to think that it could one day hold the number one position in that regard. In fact, in Q2 2021, Shopify surpassed Amazon in quarterly customer traffic for the first time.
Shopify’s revenue has continued to increase at high double-digit growth rates even after the re-opening of physical retail locations. In its latest earnings report, the company reported a 46% year-over-year increase in its Q3 revenue. Last year, Shopify stores surprised everyone by selling a total of US$5.1 billion over the Black Friday-Cyber Monday weekend. Most investors are expecting growth rates to slow down this year. However, if Shopify can surprise once again, it could be a major catalyst in driving this stock upward.
This is why companies should always strive to move with the times
If you’re an established company, but refuse to adapt to the current market trends, there’s a chance you could be left behind. However, companies that aren’t necessarily the most popular could gain a lot of attention by making drastic changes. Aritzia (TSX:ATZ) falls under the description of the second company. Categorizing itself as an “everyday luxury” company, Aritzia has always seemed to blend into the background of the highly competitive retail industry. However, its attempts to push its e-commerce business into the spotlight have garnered the attention of many.
From 2016 to 2020, Aritzia’s e-commerce revenue grew at a CAGR of 36%. In fiscal year 2020, its e-commerce business accounted for 23% of its total revenue. However, the company invested heavily into its e-commerce efforts this year and has been rewarded heavily by consumers and investors alike. In 2021, Aritzia saw an 88% year-over-year increase in its e-commerce revenue. In addition, its e-commerce segment now accounts for 50% of its revenue. Aritzia stock has more than doubled this year, but we could still be in the early days of an impressive growth story.
This company could see a lot of action on Cyber Monday
The e-commerce industry could never work without the help of payment-processing companies. These are companies that provide software solutions to merchants, which enable them to complete customer transactions. With a large footprint, spanning more than 200 global markets, Nuvei (TSX:NVEI)(NASDAQ:NVEI) could see a lot of transactions go through its platform over the Black Friday-Cyber Monday weekend.
What’s impressive about Nuvei is the fact that it provides online and mobile transaction capabilities in addition to in-store payment solutions. Its omnichannel payment platform sets itself apart from its peers. Nuvei stock has fallen more than 20% in the past few months. Investors could see this dip in Nuvei stock as an early Cyber Monday treat.