While still in the midst of a recession, expectations are high for the holiday shopping season 2020. In particular, investors are counting on e-commerce to play a significant role in how consumers spend the holidays this year, and Amazon.com (NASDAQ: AMZN), is, of course, supposed to lead the charge.
But it’s not gonna be the only big winner. In the October 23 edition of “The Wrap” on Motley Fool Live, host Jason Hall, Motley Fool contributor Danny Vena and Motley Fool analyst Jason Moser discussed three other stocks they believe are poised for strong growth this holiday season and beyond.
Jason Hall: American Express just reported, and part of the reporting, they said that the consumer spending that they saw, of course, is about adjusting travel and entertainment because no one is on the plane and the Most of your restaurants are closed and you don’t walk through them – they deliver if you want something.
So, taking these pandemic effects into account, consumer spending actually increased in the third quarter. Not from the second trimester, but increased by Last year. It’s a big problem. I think it also supports the idea that this will be a huge holiday shopping season.
Guys, Danny, I want you to answer that question first. I want you to name a company that is in the best position to have a great fourth quarter because of consumer spending, but that company cannot be Amazon. Danny, what’s the matter?
Danny Vena: Well since I’m gonna be a little crippled here I’ll go with it Shopify (NYSE: SHOP). Always reaping the ecommerce dollars, always in touch with consumers through the merchants on his platform. Shopify has grown like a weed, and I don’t see it slowing down anytime in the near future.
Room: Jason, now that you’ve been even more crippled here, who do you say? Who will win this fourth quarter?
Jason Moser: Totally agree with Danny over there. I’m a happy Shopify shareholder, but I’ll throw Etsy (NASDAQ: ETSY) in the mix there. In fact, when we had Fool Fest this summer and I put together like a stock basket to stay at home, Etsy was one of those stocks. Just to say that they have proven beyond a reasonable doubt that they are essentially Amazon-proof at this point. Amazon cannot disrupt Etsy. I’m going to go ahead and make this call.
The numbers tell the story and Etsy just went up in flames. I really like the acquisition of Reverb they made and Reverb, for those who are not familiar, this is the network that connects them for musical instruments and equipment. We actually bought a Reverb guitar for my daughter for last Christmas, and it was just a flawless experience. I have the impression that they have several ways of proceeding. Seeing a lot of advertising over the past few months, and the business continues to turn it on.
Room: Yeah, I know I’m dumb. Sorry about that, guys. My wife is online. She’s here at the office with me, and her job is actually more important than mine. So if anyone gets kicked out of this office, it will be me. I will throw MasterCard (NYSE: MA) over there. I think it’s – it’s a transactional business; they’ve been doing amazing things this year and I think they’re going to continue doing amazing things whether or not consumer spending has a good quarter, but I think it will.
I think Mastercard is the one you should always have on this list.