It’s the weekend before Thanksgiving and the holiday shopping is about to begin in earnest.
Of course, this year will be different due to the COVID-19 pandemic. Between lockdowns and Black Friday sales, this coming week could be the biggest online retailer ever.
Yet for online retail shopping, nothing compares to Singles Day in China. This event happened recently and Louis Navellier, editor-in-chief of Accelerated profits, used the explosive sales results to compare online retailers and offer subscribers the best buys right now.
Sales growth is one of eight ways Louis rates good deeds for his readers. Read his update below to find out which online retailers he loves right now!
Have a good week-end,
Luis A Hernandez
Is Alibaba a Buy after Record Singles Day event?
As you remember, Amazon (AMZN) hosted their Prime Day event just over a month ago on October 13-14. The event usually takes place in July, but due to overwhelming demand during the pandemic, the company has pushed the event back until October. Expectations for this year’s event were high with estimated revenues of $ 9.91 billion worldwide.
Well, the numbers are out and the company has crushed the estimates – making this year’s Amazon Prime Day the most successful on record. Prime Day 2020 sales reached $ 10.4 billion, up 45.2% from $ 7.16 billion in 2019 and 148.2% from $ 4.19 billion in 2018 .
It’s clear to see why Amazon shoppers are so excited about this day – Prime members saved over $ 1.4 billion during the event!
While these numbers may seem impressive, two companies on my Accelerated profits Buy List hosted its version of Prime Day this week. Chinese e-commerce companies Alibaba Group Holding Ltd. (BABA) and JD.com, Inc. (JD) recently hosted their Singles Day event.
They call this event Singles Day as opposed to Valentine’s Day to celebrate singles. It takes place on November 11 of each year because of the date’s four unique digits. Both companies’ Singles Day events brought in $ 115 billion in sales! This shattered previous records – making it the most successful Singles Day ever.
Alibaba’s Singles Day promotions have been extended this year from November 1 to November 11, bringing total revenue to $ 74.1 billion in a week and a half. This crushed the total of around $ 40.6 billion last year. JD.com grossed around $ 40.97 billion in the same time frame, crushing 2019 Singles Day revenue to $ 30.9 billion.
So what does all of this mean for stocks?
Interestingly, Wall Street yawned on Amazon Prime Day, with stock prices falling since mid-October. The point is, there are plenty of other US companies that are competing with Amazon during Prime Days. With companies like Target (TGT), Walmart (WMT) and Costco (COST) also offering similar deals during the same time frame – it’s hard for investors to get excited about Amazon’s Prime Day sales.
As for Chinese e-commerce companies, shares edged down on Wednesday due to the announcement of antitrust rules from Chinese regulators that could affect both companies. But stocks appear to be rebounding well now and I expect this trend to continue.
All three companies, AMZN, BABA and JD are rated A in my Portfolio Grader, which makes them all solid buys. But let’s take a closer look at the numbers to see how the companies stack up.
Amazon released its revenue and results for the third quarter on October 29. Amazon achieved total third quarter revenue of $ 96.15 billion, an increase of 39.3% year-over-year. This topped analysts’ estimates by $ 92.7 billion. Amazon also made third-quarter earnings of $ 12.37 per share, beating analysts’ forecasts of $ 7.41 by 66.9%.
While AMZN is up around 70% year-to-date, part of its strength is due to its heavy weighting in the SPDR S&P 500 (SPY) and the NASDAQ 100 (QQQ). Currently, it holds a 4.39% weight in SPY and a 10.18% weight in QQQ. So every time someone buys an index, they are laying the foundation for tech stocks. This is why he has been so stable.
For the most recent quarter, Alibaba reported total revenue of $ 22.84 billion, annual revenue growth of 30%, and profit of $ 6.94 billion, representing profit growth annual 44%. Second-quarter profit per ADS increased 37% year-over-year to $ 2.65. The consensus estimate predicted earnings of $ 2.11 per share on $ 23.17 billion in revenue, so BABA posted a 25.6% surprise and a slight shortfall.
Annual active consumers at Alibaba’s sites soared to 757 million and monthly mobile users increased to 881 million, as “the company’s core domestic commerce business continues to grow steadily” as a result of the pandemic in China.
JD.com, Inc. is expected to release its third quarter results before the market opens on November 16. Analysts are looking for earnings that will rise 37.9% year-on-year to $ 0.40 per share, from $ 0.29 per share in the third quarter of 2019. Earnings estimates have also been revised upward over time. the past three months, which bodes well for another quarterly earnings surprise. Third-quarter revenue is expected to increase 33.6% year-on-year to $ 25.74 billion.
If you are looking for high growth stocks with superior fundamentals, I prefer JD and BABA over AMZN. These are actions that can stand up for themselves and are good buys right now.
AT Accelerated profits, where I update subscribers every Monday, my latest weekly earnings guide identified seven particularly strong buys on our shopping list. my Accelerated profits stocks continue to post positive earnings and sales wave after wave, and have beaten analysts’ expectations.
In fact, of the 37 Buy List companies that have reported results so far, 34 have crushed earnings estimates by 40% on average. Obviously, the results season has been phenomenal for our Accelerated Benefits companies, and it’s not over yet.
And that’s not all, I’ve found good buys every week since the market hit a milestone on March 24th. And many of the stocks have already generated a year of profit! I think you won’t want to miss this opportunity, so click here for a free briefing on our current initiative, the accelerated income project.
Editor, Accelerated Profits