E-commerce has been tremendous success story. This has also put a lot of pressure to traditional retail. Sears is going towards bankruptcy and Macy’s is also in similar death spin currently. Affects also have ripple effects to REITs which have these troubled tenants. Even diehard dividend investor like me can’t sit on the side and not to jump in to bandwagon of e-commerce La-la land.
I have all these stocks in my portfolio. Purchased recently and would buy more today also. I go from less risky to more risky in order. All the stocks are listed on major US stock exchanges.
The most dominant player in western market is Amazon (AMZN). In addition to normal e-commerce, Amazon also has booming cloud service business and online streaming service. AMZN is far from cheap with 188 PE or so but growth and world domination is impressive with this one. For example earning in the end of 2015 were 596M and in the end of 2016 2370M. That is growth of 300% in a year in earnings! My return estimate is 15% per year for AMZN.
Alibaba.(BABA) Jack Ma’s great Chinese e-commerce giant which is in good track to push even ahead of Amazon some day. Booming economic growth of China has been major driver for this company rise as star of e-commerce in Asian market. They have also joint venture with Alipay payment method which challenges ones like paypal. My return estimate for yearly return is 20%/year for next two years.
MercadoLibre.com (MELI) Is basically Amazon of Latin America….Not the river.. In addition to e-commerce, they also offer online auction system much like ebay. They also have their own payment system, ready made ecommerce solutions for shops, affiliate programs. Sounds similar? I estimate that Mercado and grow three fold from the current market cap helped with economy growth of Latin America. My yearly return estimate is 20%/ year.
JD.com (JD) is smaller Chinese e-commerce operator. JD has impressive 50% revenue growth per year and is just pushing to be profitable. My estimate for average yearly return for next two years is 20%/ year. It likely that 2017(I already made 10% in month with this) could be even higher as company becomes profitable and lower 2018 They good co-operation with Tencent which is one of most dominant mobile business companies in China.
Baozun (BZUN) is ecommerce gateway for global brands to sell products in China. They are backed by major investors like Alibaba. Chinese consumer market grows at +35%/ year rate and there is room for many players when the pond is getting bigger everyday. I see 30%/ yearly return possible if all goes as planned. Baozun is already profitable but growth has not yet achieved full potential but is still 25% / year in revenue.
How the hell did I make these estimates then? My estimates are based on historical P/E valuations of company and projections for growth by analyst estimates. I found these stocks from seekingalpha, tipranks, fool.com articles.