🚀 AI-picked stocks soar in May. PRFT is +55%—in just 16 days! Don’t miss June’s top picks.Unlock full list

There's Optimism eCommerce Growth Has Bottomed in Q2 - Bernstein

Published 2022-08-24, 08:32 a/m
EBAY
-
AMZN
-
W
-
ETSY
-

By Senad Karaahmetovic

A Bernstein analyst believes there are pieces of evidence that eCommerce growth has bottomed out in the second quarter of this year.

The analyst notes “improving” Y/Y growth rates in recent months, mostly fueled by Amazon’s Prime Day. Although recessions remain present, the recent eCommerce strength is encouraging.

“The US eCommerce penetration curve isn't under as much pressure as headlines suggest. We estimate that inflation-adjusted eCom penetration was 24.3% of retail (ex-auto, gas & food) in 2Q22, ~150bps better than 2Q21 (nominal penetration and Y/Y growth were 21.0% and 7.3% respectively). That's in line with the pace of increasing digital penetration pre-COVID,” the analyst said in a client note.

The analyst also expects to see a more competitive online market going forward, as well as the divergence between the U.S. and Europe.

“Penetration rates continue to fall below their respective trendlines in the UK and EU, with eCommerce spend decreasing Y/Y in both regions,” he added.

Bernstein has Overweight ratings on Amazon (NASDAQ:AMZN) and Etsy (NASDAQ:ETSY), while eBay (NASDAQ:EBAY) and Wayfair (NYSE:W) are rated Market Perform and Underperform, respectively.

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.