The e-commerce sector has been on fire for a while in the post-COVID era, and while it did slow down a little along with most tech stocks, it has recovered significantly due to strong consumer demand. We’ve seen some players like Temu have explosive growth with cheap Chinese products flooding the U.S. market. And while there was a scare of De Minimis being ended, Trump has reinstated it. Moreover, U.S.-based e-commerce companies have also done well.
Global e-commerce sales are projected to hit $6.56 trillion this year and could grow even more in the coming years as AI improves logistics and supply chains. E-commerce companies are also expanding into fintech and cloud computing businesses.
If the broader market continues to do well in the coming quarters, this industry could deliver solid returns for investors. As such, it’s a good idea to look into the stocks spearheading the gains so far this year.
An e-commerce platform displaying a wide range of products to customers online.
Methodology
For this article, I screened the top-performing e-commerce stocks year-to-date. Stocks that I have covered recently will be excluded from this list.
I will also mention the number of hedge fund investors in these stocks. Why are we interested in the stocks that hedge funds pile into? The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter’s strategy selects 14 small-cap and large-cap stocks every quarter and has returned 373.4% since May 2014, beating its benchmark by 218 percentage points (see more details here).
15. Bilibili Inc (NASDAQ:BILI)
Number of Hedge Fund Holders In Q4 2024: 21
Bilibili Inc (NASDAQ:BILI) provides entertainment services for young generations in China and is also linked to e-commerce.
The stock is up significantly so far in 2025 as its Q4 2024 earnings showed solid bottom-line and top-line growth. Bilibili posted its first-ever quarter of GAAP profitability in Q4 2024 and revenues grew 22% year-over-year to $1.06 billion for the quarter and 19% for the full year to $3.68 billion.
Moreover, it posted a 79% year-over-year increase in mobile gaming revenue for Q4, along with a 24% increase in advertising revenue for Q4. Operating cash flow surged to $191.9 million for Q4, up from $91 million a year earlier.
This has led analysts to lift their price targets as well.
The consensus price target of $20.33 implies 5.26% downside.
BILI is up 19.08% year-to-date.
14. IBEX Ltd (NASDAQ:IBEX)
Number of Hedge Fund Holders In Q4 2024: 15
IBEX Ltd (NASDAQ:IBEX) provides technology-enabled customer lifecycle experience solutions.
The stock is up significantly so far in 2025 after IBEX reported strong financial results for Q2 2025, with revenue of $140.7 million (up 6.1% year-over-year) and EPS of $0.61, a 79% increase from $0.34 in Q2 2024.
In addition, net income rose by 20%, and profit margins improved to 6.6% from 4.6%. The earnings exceeded analyst expectations by $6.72 million in revenue and $0.59 in adjusted EPS and drove a rally.
Earlier, IBEX completed a $70 million repurchase of shares and it secured three new client partnerships in Q1 FY2025.
The consensus price target of $25 implies 2.86% downside.
IBEX is up 19.29% year-to-date.
13. Baozun Inc (NASDAQ:BZUN)
Number of Hedge Fund Holders In Q4 2024: 8
Baozun Inc (NASDAQ:BZUN) is an e-commerce company that offers end-to-end services.
The stock is up significantly so far in 2025 as it reported strong Q4 2024 results, with a 12.8% year-over-year revenue growth to RMB2,057.0 million ($293.1 million). The E-Commerce segment grew by 13.9%, while Brand Management revenue increased by 10.3%.
It also continued its share repurchase program and bought back $9.9 million of American Depository Shares (ADSs) late last year.
The consensus price target of $3.2 implies 3.61% downside.
BZUN is up 22.29% year-to-date.
12. DigitalOcean Holdings Inc (NYSE:DOCN)
Number of Hedge Fund Holders In Q4 2024: 18
DigitalOcean Holdings Inc (NYSE:DOCN) is a cloud computing platform that provides on-demand infrastructure. This includes e-commerce clients.
The stock is up significantly so far in 2025 following the release of its Q4 2024 financial results. The company reported revenue of $204.9 million, up 13% year-over-year. This exceeded Wall Street estimates of $200.54 million.
Adjusted EPS came in at $0.49 and beat consensus estimates of $0.34. Moreover, it provided optimistic guidance for Q1 FY2025 and forecasted revenue of $870 to $890 million and EPS of $1.85 to $1.95. Both came in above analyst expectations.
The consensus price target of $42.4 implies 3.04% upside.
DOCN is up 23.16% year-to-date.
11. StoneCo Ltd (NASDAQ:STNE)
Number of Hedge Fund Holders In Q4 2024: 24
StoneCo Ltd (NASDAQ:STNE) is a fintech platform widely used for e-commerce purchases.
The stock is up significantly so far in 2025 as StoneCo announced a new share repurchase program of up to 2 billion Brazilian reals late last year. This replaced its previous program and restored a lot of confidence in STNE stock.
As of Q3 2024, revenue rose 8.8% year-over-year to 3.21 billion reals, with net income up 32% to 539.69 million reals.
The consensus price target of $14.38 implies 46.61% upside.
STNE is up 23.21% year-to-date.
10. PDD Holdings Inc (NASDAQ:PDD)
Number of Hedge Fund Holders In Q4 2024: 85
PDD Holdings Inc (NASDAQ:PDD) is an e-commerce company that owns Pinduoduo and Temu.
The stock is up significantly so far in 2025 as PDD reported a 44% year-over-year revenue growth in its latest earnings. Revenue reached RMB99.4 billion. Plus, gross profit margins remained robust. U.S.-China trade relations have also eased after Trump reinstated De Minimis exemptions. This means smaller Temu orders remain outside the scope of tariffs.
Besides Trump being softer on his tariffs policy, the company is also gaining from Temu moving a significant amount of its fulfillment operations to U.S.-based facilities. This would cut shipping costs and delivery times.
The consensus price target of $173.4 implies 46.17% upside.
PDD is up 23.74% year-to-date.
9. Dnow Inc (NYSE:DNOW)
Number of Hedge Fund Holders In Q4 2024: 26
Dnow Inc (NYSE:DNOW) is a global distributor of energy and industrial products. The company also has a hand in digital commerce services.
The stock is up significantly so far in 2025 as DNOW reported significantly better-than-expected Q4 2024 earnings, with revenue of $571 million (beating analyst estimates of $552.2 million) and non-GAAP EPS of $0.25, which exceeded expectations. Adjusted EBITDA was $45 million.
Moreover, DNOW announced a new $160 million share buyback program. This doubled its previous authorization and amounts to 10% of its outstanding shares. It also completed the acquisition of Trojan Rentals for $114 million in cash.
The consensus price target of $17 implies 4.33% upside.
DNOW is up 24.75% year-to-date.
8. Inter & Co Inc (NASDAQ:INTR)
Number of Hedge Fund Holders In Q4 2024: 12
Inter & Co Inc (NASDAQ:INTR) is a Brazilian fintech company that operates a super app.
The stock is up significantly so far in 2025 as it reported its highest-ever net income of 973 million Brazilian reals in 2024. It’s a threefold increase from the prior year.
Total net revenue grew 35% year-over-year to 6.4 billion reals, with net interest margins improving to 9.7% in Q4 2024.
The company also added 4.2 million new clients during the year, reaching a total of 36 million customers. Also, Inter & Co’s Q4 EPS of $0.11 surpassed analysts’ consensus estimates of $0.10.
The consensus price target of $7.48 implies 40.11% upside.
INTR is up 25.57% year-to-date.
7. Tapestry Inc (NYSE:TPR)
Number of Hedge Fund Holders In Q4 2024: 57
Tapestry Inc (NYSE:TPR) is a luxury fashion holding company that also engages in e-commerce.
The stock is up significantly so far in 2025 after Tapestry reported record second-quarter revenue of $2.2 billion, a 5% year-over-year increase. This was driven by 10% growth in the Coach brand.
The company’s gross margins expanded by 280 basis points to 74.4%, and diluted EPS reached $1.38. It exceeded expectations. The company also raised its full-year guidance for EPS to $4.85-$4.90 from $4.50-$4.55.
Plus, Tapestry entered into an agreement to sell its Stuart Weitzman brand to Caleres for $105 million in cash.
The consensus price target of $78.53 implies 6.89% downside.
TPR is up 26.70% year-to-date.
6. JOYY Inc (NASDAQ:YY)
Number of Hedge Fund Holders In Q4 2024: 26
JOYY Inc (NASDAQ:YY) is a tech company with social media platforms and e-commerce services.
The stock is up significantly so far in 2025 after JOYY finalized the sale of its YY Live business in China to Baidu for $2.1 billion. It received a final payment of $240 million on February 25, 2025.
On the same day as the deal closure, Benchmark upgraded JOYY from “Hold” to “Buy.”
In addition, JOYY resolved safety concerns that had led to Bigo Live’s removal from app stores by reinstating it on Google Play and negotiating its potential return to Apple’s App Store.
The consensus price target of $35 implies 33.49% downside.
YY is up 26.81% year-to-date.
5. MercadoLibre Inc (NASDAQ:MELI)
Number of Hedge Fund Holders In Q4 2024: 96
MercadoLibre Inc (NASDAQ:MELI) is an e-commerce company that operates in Latin America.
The stock is up significantly so far in 2025 as MercadoLibre reported solid Q4 2024 results. Revenue grew 37% year-over-year to $6.06 billion, while EPS reached $12.61, far exceeding analyst expectations of $7.26 per share.
It was driven by robust growth in its e-commerce and fintech segments. Constant-currency sales also increased 96% due to Argentinian inflation.
The consensus price target of $2,385.94 implies 9.71% downside.
MELI is up 27.22% year-to-date.
4. Vasta Platform Ltd (NASDAQ:VSTA)
Number of Hedge Fund Holders In Q4 2024: 2
Vasta Platform Ltd (NASDAQ:VSTA) is a Brazil-based educational tech company. It also engages in e-commerce.
The stock is up significantly so far in 2025 as Vasta Platform is expected to become profitable this year.
Analysts expect 59 million reals for the year. This follows narrowing losses as TTM losses have shrunk to 61 million reals compared to 84 million reals in its most recent fiscal year.
The company is set to release its fourth-quarter and full-year 2024 financial results on March 12 and analysts are optimistic.
The consensus price target of $3 implies 5.08% upside.
VSTA is up 41.50% year-to-date.
3. Zhihu Inc (NYSE:ZH)
Number of Hedge Fund Holders In Q4 2024: 8
Zhihu Inc (NYSE:ZH) is an online content operator in China.
The stock is up significantly so far in 2025 as Zhihu recently achieved its highest gross profit margin since its listing at 63.9%. This was driven by a substantial reduction in costs and operating expenses (down 35.6% and 30.5%, respectively).
The company reported a significant increase in paid membership revenue, which rose 11.5% year-over-year in Q3 2024, alongside a 20% growth in daily active user engagement.
Also, on February 24, Zhihu experienced a surge in options trading volume, with call options increasing by 381% compared to the daily average.
The consensus price target of $4.7 implies 11.9% downside.
ZH is up 50.14% year-to-date.
2. Dada Nexus Ltd (NASDAQ:DADA)
Number of Hedge Fund Holders In Q4 2024: 10
Dada Nexus Ltd (NASDAQ:DADA) operates a leading local on-demand retail and delivery platform in China.
The stock is up significantly so far in 2025 as JD.com proposed acquiring all outstanding shares at $2 per American Depositary Share (ADS). The company already owns 63% of Dada Nexus.
The company has now hired financial and legal advisors to assist its special committee in evaluating the acquisition offer. JD.com’s proposal has overshadowed previous concerns about the company’s fundamentals.
The consensus price target of $2.5 implies 32.63% upside.
DADA is up 55.37% year-to-date.
1. Alibaba Group Holding Ltd (NYSE:BABA)
Number of Hedge Fund Holders In Q4 2024: 107
Alibaba Group Holding Ltd (NYSE:BABA) is an e-commerce and cloud computing company that is increasingly becoming involved with AI.
The stock is up significantly so far in 2025 after Alibaba reported solid earnings for the December quarter of 2024, with revenue reaching $38.6 billion (280.2 billion yuan). This was an 8% year-over-year increase and marked its fastest revenue growth in over a year.
The company’s Cloud Intelligence Group saw a 13% year-over-year revenue increase, while e-commerce also performed well. Net profit surged to $6.72 billion (48.9 billion yuan).
Also, the DeepSeek spook ended up drawing a lot of attention towards cheap tech stocks in China with their own AI models. Alibaba came up with its own AI model quickly after DeepSeek became viral and said it was better than DeepSeek V3.
The consensus price target of $138.36 implies 3.32% upside.
BABA is up 58.18% year-to-date.
While we acknowledge the potential of BABA as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than BABA but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.
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