In this article, we discuss the 5 best e-commerce stocks to buy according to analysts. To go through our analysis of the e-commerce and online retail industry, go directly to the 10 Best E-commerce Stocks To Buy According to Analysts.
5. Sea Limited (NYSE:SE)
Average Analyst Share Price Upside: 20.83%
Average Analyst Share Price Target: $64.38
Sea Limited (NYSE:SE), headquartered in Singapore, is a prominent consumer internet company in Southeast Asia and Taiwan, operating three core businesses: Shopee (an e-commerce platform), Garena (a global games developer and publisher), and SeaMoney (a digital payments and financial services provider).
On February 1, Citi upgraded Sea Limited (NYSE:SE) to Buy from Neutral and increased the price target on the shares to $50 from $44, anticipating potential improvements in losses for its Shopee e-commerce unit. The investment firm cited uncertainty in the Southeast Asia e-commerce landscape, highlighting potential impacts from TikTok shopping and its integration into the Toko app.
According to Insider Monkey’s fourth-quarter database, 51 hedge funds were long Sea Limited (NYSE:SE), compared to 55 funds in the earlier quarter. Chase Coleman’s Tiger Global Management is the largest stakeholder of the company, with 14.3 million shares worth $580 million.
Artisan Developing World Fund stated the following regarding Sea Limited (NYSE:SE) in its fourth quarter 2023 investor letter:
“Bottom contributors to performance for the quarter included Southeast Asian e-commerce leader Sea Limited (NYSE:SE). Sea was negatively impacted by rising investment spend, and TikTok’s announcement of a partnership with Tokopedia which resulted in the relaunch of TikTok Shop in Indonesia.”
4. Mercadolibre, Inc. (NASDAQ:MELI)
Average Analyst Share Price Upside: 30.10%
Average Analyst Share Price Target: $1935.45
MercadoLibre, Inc. (NASDAQ:MELI) is a prominent e-commerce technology company based in Latin America, with its headquarters situated in Buenos Aires, Argentina. Established in 1999, the company operates primarily through its key platforms, MercadoLibre.com and MercadoPago.com. MercadoLibre, Inc. (NASDAQ:MELI) provides a diverse array of solutions tailored for individuals and businesses engaged in online buying, selling, advertising, and payment transactions.
Insider Monkey’s examination of 933 hedge fund portfolios revealed that 81 funds held stakes in MercadoLibre, Inc. (NASDAQ:MELI). The largest shareholder of MercadoLibre, Inc. (NASDAQ:MELI) was Generation Investment Management, led by David Blood and Al Gore, which possesses a $673 million stake in the company.
Lakehouse Global Growth Fund stated the following regarding MercadoLibre, Inc. (NASDAQ:MELI) in its fourth quarter 2023 investor letter:
“The Funds second largest holding, Buenos Aires-based e-commerce leader MercadoLibre, Inc. (NASDAQ:MELI) delivered another standout result in November that came in well ahead of analysts’ expectations. Net revenue grew 40% year-on-year in U.S. dollar terms to $3.76 billion while operating income grew 131% to $685 million, providing a very impressive balance of growth and profitability. The marketplace business grew across all major regions and total gross merchandise volume (GMV) increased to $11.4 billion, up 32% year-on-year. The platform’s core metrics remained healthy with items sold accelerating for the fourth straight quarter to 357 million, unique buyers increasing 18% year-on-year to 50.3 million and items sold per buyer reaching an all-time high of 7.1.
As always, the company continues to invest in its logistics capabilities and is now able to deliver 80% of all items sold within 48 hours and 54% same or next day. In our view, building and owning a first-class logistics network is critical for the company’s success as it will ultimately help protect its market share and profits from competitors over the long-term. We also note that faster shipping accelerates sales growth, which in turn, fosters wider selection, better prices, and greater investment in logistics, all part of a virtuous cycle. Zooming out, as the largest ecommerce player in LATAM, we continue to believe MercadoLibre is in an ideal position to capitalise on the significant opportunities ahead and deliver many years of above average growth and margin expansion.”
3. Alibaba Group Holding Limited (NYSE:BABA)
Average Analyst Share Price Upside: 44.40%
Average Analyst Share Price Target: $104.49
Alibaba Group Holding Limited (NYSE:BABA) stands as a formidable force in the Chinese e-commerce realm, anchored by its flagship platform Alibaba.com, which ranks among the largest in the industry. Beyond its core e-commerce endeavors, Alibaba Group Holding Limited (NYSE:BABA) has diversified its investments across various sectors, including cloud computing, digital media, and entertainment.
In the fourth quarter of 2023, Alibaba Group Holding Limited (NYSE:BABA) attracted interest from 116 hedge funds, collectively holding positions valued at $3.587 billion. This marked an uptick from the previous quarter, where 110 funds held positions totaling $3.36 billion. Appaloosa Management LP emerged as the top shareholder in the company, boasting a position valued at $337.168 million.
2. JD.com, Inc. (NASDAQ:JD)
Average Analyst Share Price Upside: 47.51%
Average Analyst Share Price Target: $37.97
JD.com, Inc. (NASDAQ:JD), also known as Jingdong, and internationally as Joybuy, formerly 360buy, is a Chinese e-commerce powerhouse headquartered in Beijing. It specializes in the sale of electronics products and general merchandise, ranging from audio and video items to books.
On March 6, JD.com, Inc. (NASDAQ:JD) unveiled its earnings for the fourth quarter of 2023. The company reported a non-GAAP earnings per American depositary share of $0.75, surpassing market estimates by $0.12. Revenue experienced a robust 3.6% year-over-year increase, reaching $43.1 billion, exceeding estimates by $1.49 billion.
According to Insider Monkey’s fourth-quarter database, sentiment towards JD.com, Inc. (NASDAQ:JD) remained bullish, with 56 hedge funds expressing positive views, up from 53 funds in the previous quarter. Notably, Chase Coleman’s Tiger Global Management held a significant stake in the company, with 8.8 million shares valued at $254.35 million.
1. PDD Holdings Inc. (NASDAQ:PDD)
Average Analyst Share Price Upside: 54.91%
Average Analyst Share Price Target: $182.78
Based in Shanghai, China, PDD Holdings Inc. (NASDAQ:PDD) is a multinational commerce conglomerate with a diverse range of business ventures. The company boasts an extensive network encompassing sourcing, logistics, and fulfillment capabilities, primarily operating through its flagship mobile-only marketplace. This platform facilitates connections between millions of agricultural producers and consumers across China.
As of March 21, analysts at Citigroup reiterated their Buy rating on PDD Holdings Inc. (NASDAQ:PDD) and maintained a price target of $185.
As of Q4 2023 end, 71 out of the 933 hedge funds profiled by Insider Monkey had held a stake in the firm. PDD Holdings Inc. (NASDAQ:PDD)’s largest stakeholder among these is Lei Zhang’s Hillhouse Capital Management since it owns $1.4 billion worth of shares.
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