In this article, we discuss the 5 internet retail stocks to buy now. If you want to read about some more internet retail stocks, go directly to 15 Internet Retail Stocks To Buy Now.
5. Walmart Inc. (NYSE:WMT)
Number of Hedge Fund Holders: 68
Walmart Inc. (NYSE:WMT) engages in the operation of retail, wholesale, and other units worldwide. On November 17, Morgan Stanley analyst Simeon Gutman maintained an Overweight rating on Walmart Inc. (NYSE:WMT) stock and raised the price target to $164 from $150, noting increased estimates following the company’s third-quarter beat & raise and rolling forward the valuation framework to FY25 estimates.
Among the hedge funds being tracked by Insider Monkey, Camas, Washington-based investment firm Fisher Asset Management is a leading shareholder in Walmart Inc. (NYSE:WMT) with 8.1 million shares worth more than $1 billion.
In its Q2 2021 investor letter, ClearBridge Investments, an asset management firm, highlighted a few stocks and Walmart Inc. (NYSE:WMT) was one of them. Here is what the fund said:
“The pandemic has created challenges for businesses large and small; one major challenge for large essential retailers such as ClearBridge holdings Home Depot, Walmart Inc. (NYSE:WMT) and Costco has been ensuring adequate staffing to meet demand under trying conditions. All three instituted enhanced pay practices during the pandemic, with raises, unplanned bonuses and other benefits helping compensate employees for their efforts in a difficult environment. In September 2020 Walmart raised wages for 165,000 employees, including several entry positions to $15 an hour. It followed this in February with a raise for 425,000 workers that moved its average pay above $15 an hour.”
4. MercadoLibre, Inc. (NASDAQ:MELI)
Number of Hedge Fund Holders: 81
MercadoLibre Inc. (NASDAQ:MELI) operates online commerce platforms in Latin America. On November 3, MercadoLibre posted earnings for the third quarter of 2022, reporting earnings per share of $2.56, beating market estimates by $0.24. The revenue over the period was $2.69 billion, up 44.6% compared to the revenue over the same period last year and missing market estimates by $10 million.
On November 3, Citi analyst Joao Pedro Soares maintained a Buy rating on MercadoLibre, Inc. (NASDAQ:MELI) stock and lowered the price target to $1,050 from $1,150, noting that the firm is said to be the best vehicle to be positioned in secular e-commerce growth in Latin America.
Among the hedge funds being tracked by Insider Monkey, Chicago-based investment firm Citadel Investment Group is a leading shareholder in MercadoLibre Inc. (NASDAQ:MELI) with 710,900 shares worth more than $588.5 million.
In its Q3 2022 investor letter, SaltLight Capital Management, an asset management firm, highlighted a few stocks and MercadoLibre Inc. (NASDAQ:MELI) was one of them. Here is what the fund said:
“Despite the economic slowdown in developed markets, our Latin American investment in MercadoLibre, Inc. (NASDAQ:MELI) had another outstanding third quarter growing revenues by 61% on a USD FX-neutral basis (GMV +32% FXN). Despite this strong growth, it also managed to expand operating profit margins to 11% (compare this to Amazon which is struggling to make a profit in its retail business).
LatAm’s e-commerce penetration is still very low compared to Asia and developed markets. MELI is mostly a marketplace but has also adopted models from elsewhere. In the recent past, it has built 3rd party seller infrastructure that has made Amazon so successful, and it is also heavily investing in a mobile-based fintech infrastructure very similar to ANT Group in China. After only launching a couple of quarters ago, their advertising business is already at 1.3% of Gross Merchandise Value.”
3. Alibaba Group Holding Limited (NYSE:BABA)
Number of Hedge Fund Holders: 105
Alibaba Group Holding Limited (NYSE:BABA) provides technology infrastructure and marketing reach to help merchants, brands, retailers, and other businesses to engage with their users and customers in the People’s Republic of China and internationally. On November 17, Alibaba posted earnings for the second quarter of 2022, reporting earnings per share of $1.82, beating market estimates by $0.17. The revenue over the period was $29.12 billion, up 3.0% compared to the revenue over the same period last year and missing market estimates by $490 million.
On November 18, Truist analyst Youssef Squali maintained a Buy rating on Alibaba Group Holding Limited (NYSE:BABA) stock and lowered the price target to $120 from $125, noting that the company’s second-quarter results demonstrated that it is making strong strides in protecting margins while managing through a tough macro environment.
At the end of the third quarter of 2022, 105 hedge funds in the database of Insider Monkey held stakes worth $4.2 billion in Alibaba Group Holding Limited (NYSE:BABA), compared to 106 in the preceding quarter worth $7.4 billion.
In its Q3 2022 investor letter, Polen Capital, an asset management firm, highlighted a few stocks and Alibaba Group Holding Limited (NYSE:BABA) was one of them. Here is what the fund said:
“Alibaba Group Holding Limited (NYSE:BABA) is the leading e-commerce company in China. The stock was weak over the quarter as they reported a quarterly revenue decline. The company has been heavily impacted by the continued covid-19 lockdowns throughout China and the aggressive rate increases and a deteriorating outlook for China’s economy have weighed heavily on the stock. The share price has also been under pressure due to the U.S. Securities and Exchange Commission’s plans to delist Chinese tech stocks in 2024 if they do not provide access to audit files.”
2. PayPal Holdings, Inc. (NASDAQ:PYPL)
Number of Hedge Fund Holders: 126
PayPal Holdings, Inc. (NASDAQ:PYPL) operates a technology platform that enables digital payments on behalf of merchants and consumers worldwide. On October 24, PayPal revealed that it was adding passkeys as an easy and secure login method for PayPal accounts. Passkeys are a new industry standard created by the FIDO Alliance and the World Wide Web Consortium.
On November 7, BMO Capital analyst James Fotheringham maintained an Outperform rating on PayPal Holdings, Inc. (NASDAQ:PYPL) stock and lowered the price to $109 from $137, noting that the company reported a cost-driven third-quarter earnings beat and expects 2023 margin expansion of 100 basis points y/y from cost initiatives.
Among the hedge funds being tracked by Insider Monkey, Camas, Washington-based investment firm Fisher Asset Management is a leading shareholder in PayPal Holdings, Inc. (NASDAQ:PYPL) with 17.7 million shares worth more than $1.5 billion.
In its Q2 2022 investor letter, Mayar Capital, an asset management firm, highlighted a few stocks and PayPal Holdings, Inc. (NASDAQ:PYPL) was one of them. Here is what the fund said:
“This quarter, we bought shares in PayPal (NASDAQ:PYPL), the payments platform. PayPal has been one of the more high-profile victims of the market’s brutal ruthlessness over the past few months, and the stock fell by over two-thirds between its peak in July to the beginning of March this year. As we progressed PayPal through the Mayar Checklist Process, we identified a business with a leadership position in a structurally growing market.
The company benefits from certain network effects and faces several competitive threats at the same time. As the business profited from the move to online retail during the pandemic, as well as from the stimulus cheques handed out in the US, the stock price soared to absurd levels. As so often happens, however, the market had overcorrected by February and this quarter was offering prospective shareholders prices that assumed essentially zero growth in the business. When life gives you irrational sellers, make lemonade!”
1. Amazon.com, Inc. (NASDAQ:AMZN)
Number of Hedge Fund Holders: 269
Amazon.com, Inc. (NASDAQ:AMZN) engages in the retail sale of consumer products and subscriptions in North America and internationally. On November 21, Amazon was reportedly considering a plan to use an EV startup’s technology in delivery vehicles, strengthening existing partnerships with Rivian Automotive. Amazon also considered coming to the rescue of now-defunct Volkswagen and Ford-backed self-driving startup Argo AI in the past few months.
On November 2, Tigress Financial analyst Ivan Feinseth maintained a Buy rating on Amazon.com, Inc. (NASDAQ:AMZN) stock and lowered the price target to $192 from $232, noting that the company’s powerful Prime membership momentum increased traction with third-party sellers, strength in AWS, and rapidly growing ad revenue will continue to drive further growth.
At the end of the third quarter of 2022, 269 hedge funds in the database of Insider Monkey held stakes worth $34.6 billion in Amazon.com, Inc. (NASDAQ:AMZN), compared to 252 in the preceding quarter worth $30 billion.
In its Q2 2022 investor letter, Baron Funds, an asset management firm, highlighted a few stocks and Amazon.com, Inc. (NASDAQ:AMZN) was one of them. Here is what the fund said:
“Amazon.com, Inc. (NASDAQ:AMZN) is the world’s largest retailer and cloud services, provider. Shares of Amazon declined 35% in the quarter due to weaker-than-expected profits resulting from the overcapacity of resources coming out of COVID. We expect Amazon to grow its retail capacity in the quarters to come, which would enable it to improve profitability accordingly. Amazon remains one of our largest holdings due to its durable competitive advantages with a leading position in multiple trillion-dollar markets with a long runway for growth (…read more)
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