hey guys how's it going it's Andy from Magoo investing happy Wednesday so for this past week
I’ve been reading a lot the book I’ve been reading is by Jim Cramer talking about him
starting up his fund and trading stocks in like the 80s up until around 2000.
and towards the end of the book he talks about how he's so stressed out after a really tough week
trading stocks that he decides to go to Amazon Stock (AMZN Stock) and buy a book and
when I read that I was like Amazon Stock (AMZN Stock) oh that's right sometimes I forget that
Amazon Stock (AMZN Stock) started out as a as a book company and now it has expanded to this
giant e-commerce company and so I wanted to talk about some of the other e-commerce giants out
there because I feel like a lot of people either think that they missed the bus when it comes to
investing in a company like Amazon Stock (AMZN Stock) because it has grown so rapidly over the
past two decades or they want to find something that maybe has a little bit more upside also there
are some people out there that absolutely hate Amazon Stock (AMZN Stock) for what they do so
in today's video I’m going to be talking about six ecommerce stocks that I would consider buying
instead of Amazon Stock (AMZN Stock) they all have their pluses and minuses if you've been paying
attention to this sector these are companies that have done incredibly well in 2020 and I’m
going to be talking about one stock towards the end that I’m really excited about because it is
a e-commerce stock that is not talked about a lot and it's in an emerging market that could
have huge upside potential but it does have some risk involved in it yesterday I talked about some
potential catalysts that I’m watching to see if the stock market is going to crash in 2021
and if you missed that video I’ll link it up above right now but one of the things I was watching had
to do with the fang stock earnings that's Facebook stock (FB Stock) Amazon Stock (AMZN Stock) apple
stock (AAPL Stock) Netflix stock (NFLX Stock) google stock (GOOGL Stock) and then you can throw
Tesla Stock (TSLA Stock) in there and the first of these stocks was Netflix stock (NFLX Stock) who
released earnings yesterday and they ended up beating expectations so I’m going to have to wait
until next week to see what happens with the rest of the fang stocks just reminder that since I am
talking about six different stocks a day there are going to be time stamps in the description below
if I’m talking about a company that you don't really care about and you want to skip ahead
also a reminder that I’m not a licensed financial advisor and this is not financial advice
anything you hear in this video is just me giving my own opinions on the stock market
and you need to do your own research for making any investment decisions
also if you've been enjoying these videos really appreciate it hit the like and subscribe button
as would help my channel out a lot so the first stock I want to talk about today is going to be
Alibaba Stock (BABA Stock) ticker symbol $BABA and the reason I want to talk about it's had a lot of
drama behind it for the past couple months and so I’ve talked about it uh probably like four times
in the past couple months and the main reason behind it is their CEO and founder jack ma had
not been seen since October and so when the news came out that he was potentially missing the stock
fell and then there was a news release saying that he was just lying low and then yesterday was
actually the first time that he's been seen out in public since October and as a result of that
the stock has jumped around five percent today so it's always good to see uh the CEO come out of
hiding after just a couple months so the stock has had some interesting problems in the past couple
months the largest and probably most interesting is the fact that the Chinese government is
investigating them for monopoly allegations and so it is never something I thought I would have
to say about a Chinese stock but this comes after Alibaba Stock (BABA Stock)'s ant IPO was delayed
after Chinese regulators wanted them to be more transparent with some of their financial stuff
and jack ma came out and kind of criticized the way that the Chinese government was running things
and then you know he disappears and now he finally pops back up but looking at the one-year chart you
can see the result of those recent sell-offs but they've still had a pretty solid year
then you look at the five-year chart and they've had an impressive gain of 275 percent
comparing the two Chinese giants when it comes to e-commerce you have Alibaba Stock (BABA Stock) and
JD.com Stock (JD Stock) ticker symbol $JD and so when we talk about companies that could become
the next Amazon Stock (AMZN Stock) I think you have to discuss Alibaba Stock (BABA Stock) and
JD Stock (JD Stock) because I think they're the closest that you have right now however
they do operate in very different ways and I think the closest you could get to
creating a Chinese Amazon Stock (AMZN Stock) is if you mushed the two companies together
so Alibaba Stock (BABA Stock) is mainly the marketplace for things that are listed
and they bring in a fee for that and that's where almost all of their revenue comes from
they are massive with 742 million active customers annually and they have the massive
size like Amazon Stock (AMZN Stock) and they've seen incredible revenue growth over the years
because of the fees being one the largest source of revenue it has extremely high
margins of between 20 and 30 percent depending on the quarter and with singles day which is
a huge shopping holiday in china kind of similar to what we have with black Friday
Alibaba Stock (BABA Stock) and JD Stock (JD Stock) together brought in 115 billion dollars in total
sales it's usually like a one or two day sale but this year they I had it from November first until
November 11th 11 11. um and so Alibaba Stock (BABA Stock) saw their sales double from last year up
to 74 billion dollars total and comparing them to Amazon Stock (AMZN Stock) they're also rolling out
a cloud service similar to what Amazon Stock (AMZN Stock) has with AWS and if you've been paying
attention to Amazon Stock (AMZN Stock)'s earnings for the past year or so that's probably the area
that people are most excited and most curious to see whenever the earnings reports come out because
this has become a massive and highly profitable part of their business however they're not to
the point where it's become a widely profitable business like AWS it has increased its revenue to
5.65 billion dollars in revenue in 2020 and that's up from 2.14 that we saw in 2018 but at this point
they're still running at an operating income of around negative 1 billion dollars and so while
the margins have improved the company hopes to be profitable by the end of fiscal 2021. so if you're
comparing this company to Amazon Stock (AMZN Stock) and you've seen how profitable the AWS
can be for Amazon Stock (AMZN Stock) this could be a huge source of growth going forward when it
eventually becomes profitable and it should be a massive money maker for the company going forward
but I want to talk about JD.com Stock (JD Stock) ticker symbol $JD and so they're more of the
actual merchant and they sell their own products so when you look at Amazon Stock (AMZN Stock) yes
they do sell things and they produce fees for people that want to sell on their site but they
also do a lot of their own selling of merchandise so that's why I kind of compared them as being
Amazon Stock (AMZN Stock) would be what china has if you merge Alibaba Stock (BABA Stock) and
JD Stock together one of the most exciting parts about JD Stock is that they have a very impressive
logistics network it has resulted in their demand spiking during the pandemic from what I could
find their logistics network provides next day or faster shipping to 99 of the population in china
which is incredibly impressive when you think about how many people live in the country of china
as a result the stock was up 150 percent in 2020 and that's shown from the one-year chart
and then the five-year chart shows a similar gain to Alibaba Stock (BABA Stock) being up
250 percent as I mentioned JD Stock and Alibaba Stock (BABA Stock) are both e-commerce giants
but they do run slightly differently and while JD Stock has a significantly lower market cap
they actually have higher revenue than Alibaba Stock (BABA Stock) which kind of surprised me but
if you think about the way that the companies are run since JD Stock is selling their own
merchandise their revenue is significantly higher but the difference is that since they
are doing all the logistics stuff their margins are much lower and so just a reminder that
Alibaba Stock (BABA Stock)'s margin it was around 20 or 30 percent and JD.com Stock (JD Stock) is
only around four percent but they have been expanding they're going to be creating a
cloud business and a telehealth business but they don't create much revenue yet so
when you look at both JD.com Stock (JD Stock) and Alibaba Stock (BABA Stock) they do have
growth potential in the future considering they're both working on a cloud business but they have not
gotten to the point where they're profitable and then JD.com Stock (JD Stock) they still haven't
created that much revenue with it yet so you both do have growth potential they are up significantly
and I do like both of them and I’ll talk about how I’ll rank them towards the end of the video
now we're going to be going back to the American stocks with ETSY Stock (ETSY Stock) to example
ETSY Stock (ETSY Stock) I talked about ETSY Stock (ETSY Stock) in a recent video so I’m not going
to go too in depth in it but currently it's trading for 217 dollars and it's up already 22
and 20 21. looking at the one-year chart they've seen a lot of growth and it's up
almost 330 percent in the past year and then with the five-year chart they're
up 2 800 percent so the question that I always see with this incredible growth is
it sustainable because that is a crazy jump in price within just a couple years and so the rest
of the American stocks for this video all make money from listing fees unlike JD Stock that
sells their own products so as a result we're going to be expecting higher margins and something
like a JD.com Stock (JD Stock) but lower overall revenue compared to what JD Stock brings in
so when you look at the net margin they're sitting at around 17% which is pretty decent it's slightly
lower than Alibaba Stock (BABA Stock) but compared to the American markets with how much competition
you have with the e-commerce stocks I’m not that surprised about it they have seen some
crazy revenue increases during the pandemic and when you look at ETSY Stock (ETSY Stock) as a
company people have been kind of critical about the way that they've been making money
they've been relying heavily off of the boom in demand from the pandemic and a lot of people have
been selling masks on the site and so the numbers I could find is that 11% of their overall sales
were from masks but they did see a 93% increase in sales when masks were excluded so the company did
see explosive growth in 2020 and it's not only because of the mass but that was a part of it
their expected growth for next year is going to be 12% which is obviously much lower than the 97%
increase that you saw in 2020. when I look at companies that did well in the pandemic the first
thing I think of is it a fat or is it here to stay and their largest category is homeware and home
furnishings and that's just not something that gets me super excited I have no reason to believe
that ETSY Stock (ETSY Stock) is going to go away anytime soon the 12 expected growth for revenue in
the next year is very solid but it's nowhere near what we saw with the 97 increase in 2020 so based
off of that it's not my favorite ecommerce stock out there just because I think that the explosive
growth that we've seen in the stock price is going to have to sell off at some point I don't know if
it's going to be anytime soon but it's a little too risky for something that I’m looking to invest
in right now as I’m kind of expecting the market to pull back as a whole so then we go to a direct
competitor with Shopify Stock (SHOP Stock) ticker symbol shop which is trading for twelve hundred
dollars and it's up five percent on the year the one-year chart is impressive being up 157 percent
and the five-year chart shows how the stock took off in the past year and it's up fifty
one hundred percent in the past five years so you're going to see a lot of similarities
comparing Shopify Stock (SHOP Stock) to ETSY Stock (ETSY Stock) looking at their revenue chart growth
was slowing until the pandemic hit but even though I say that growth was slowing they were
still seeing 17 to 20 quarterly growth year over year so while it had been shrinking when you see
the recent increases in price they were still growing at a pretty high margin
however their margin looks a little bit different with their last quarter it was their first time
they've had positive net income that gives a net margin of only eight percent so it is much lower
than what we saw with ETSY Stock (ETSY Stock) but for the numbers that I could see it has to
do with the fact that they've been spending a lot to improve their logistics network and they've
been investing in themselves heavily and that's why they have not been profitable up until this
past quarter some of the most impressive numbers that I saw is that they've been seeing growth with
revenue at a compound annual growth rate of 71% over the past five years so this is explosive
growth and they've been doing it over multiple years and not just the fad of the pandemic and
that's why I like it slightly more than something like an ETSY Stock (ETSY Stock) and so for people
that have been around the channel for a bit you'll know that I love reoccurring revenue sources
and while Shopify Stock (SHOP Stock) has cheap plans at nine dollars a month for merchants they
also have Shopify Stock (SHOP Stock) plus which costs two thousand dollars a month
and it's so popular and it brings in 29 of their monthly recurring revenue which I absolutely love
they've also recently invested in the firm which recently IPO'd and shot up immediately after
which made them a lot of money so Shopify Stock (SHOP Stock) is a very interesting company they
have deals with stuff like Pinterest Stock (PINS Stock) to be listed on their site and since the
content annual growth rate of 71% over the past five years makes me feel a lot more confident
investing in it compared to something like an ETSY Stock (ETSY Stock) but I
do still have the same problems that I see with ETSY Stock (ETSY Stock) where
they are both very overextended in the past five years Shopify Stock (SHOP Stock) is up
fifty one hundred percent which is nuts to think about but when you see the growth of the stock
prices something like an Amazon Stock (AMZN Stock) this isn't unheard of for this type of company so
as of right now I do like Shopify Stock (SHOP Stock) more than ETSY Stock (ETSY Stock) but I
will give my final rankings towards the end of the video and next up we're going to be
going to a veteran of the e-commerce space with eBay Stock (EBAY Stock) ticker symbol e-b-a-y
which is currently trading for 56 dollars and it's up 12 percent in 2021. looking at the one-year
chart you can see that they saw nice growth in 2020 at 58 percent but it definitely lags behind
the other newcomers like Shopify Stock (SHOP Stock) and ETSY Stock (ETSY Stock) and with the
five-year chart eBay Stock (EBAY Stock) is only up 114 compared to the thousands of percent that
we saw with ETSY Stock (ETSY Stock) and Shopify Stock (SHOP Stock) with a revenue chart it shows
the restructuring that eBay Stock (EBAY Stock) has had in the mid-2010s the mid-2010s weren't
the best time for eBay Stock (EBAY Stock) as they had to change a lot of the ways that they
were doing business also the disconnect from PayPal stock (PYPL Stock) definitely hurt them
and while they don't have the explosive growth it's something like an ETSY Stock (ETSY Stock) or
Shopify Stock (SHOP Stock) it does have the name recognition and it's been around forever
this is one of the few dot com companies that have really stuck around since the early 2000s when
I’m reading about a Jim Cramer trading around the dot-com bubble it's really interesting to see him
mention all these companies that have gone under within like a year after uh the bubble burst so
eBay Stock (EBAY Stock) is still around and it is the king of margins from everything I’ve seen
eBay Stock (EBAY Stock)'s fees are extremely high when it comes to these selling fees it's around
like 10 from what I saw and that's why I’m making my case for why like eBay Stock (EBAY Stock) more
than something like a Shopify Stock (SHOP Stock) and ETSY Stock (ETSY Stock) just
reminder that Shopify Stock (SHOP Stock) had a net margin of eight percent and they've only
been profitable for like one quarter and ETSY Stock (ETSY Stock) is only up at 17
and so eBay Stock (EBAY Stock) is the king of net margin currently sitting at 46
what this means is that they're incredibly efficient at bringing in revenue and
keeping it as profit so they have incredibly high fees and without spiking sales in the past year
that's resulted in a huge increase in their net margin put that together with the fact that the
pullback wouldn't be too extreme for eBay Stock (EBAY Stock) considering they are only up 114
in the past five years I do think that it's my favorite out of something like an ETSY Stock
(ETSY Stock) or a Shopify Stock (SHOP Stock) but obviously it does not have the excitement
or the growth potential behind it considering eBay Stock (EBAY Stock) has been around forever
and then I’m going to wrap up this video talking about a stock that I’ve never discussed on this
channel and I’m assuming most people have never heard of it I’m going to be talking
about Jumia Stock (JMIA Stock) ticker symbol $JMIA which is trading for forty four dollars and it's
up nine percent in 2021. for people that feel like they might have missed out on the e-commerce
boom this could be a decent option and so Jumia Stock (JMIA Stock) is an online marketplace for
several African countries but it is based out of Germany looking at the one-year chart the
stock is at more than 400 percent but when you see the all-time chart it's not as pretty you
see a steep decline right after the stock IPO'd and has been climbing its way back ever since
and this comes after notorious short seller citron came out and said that they could
potentially be a fraudulent company if that name reminds you of anything they have been
very vocal recently talking out and being a short seller on GameStop Stock (GME Stock) which they
recently got burned and so I think this might be the type of company that any time that they
make a claim in one direction or the other I think it might be beneficial to be going
completely against them so they shorted NIO Stock (NIO Stock) which was not a great idea
NIO Stock (NIO Stock) has been one of the top performing stocks of 2020 they shorted
GameStop Stock (GME Stock) in the past couple months and they got burned by the short squeeze
and then the one stock they're really bullish on which was luck and coffee and that's a company
that got removed from the new York stock exchange because of fraud so at this point I don't really
listen to anything they say anymore but this is a very young business and they were not really
able to grow during the pandemic as we saw a retraction and a shrinkage in their revenue
uh in 2020 so this is a very interesting company their net margin which has improved but it's still
more than negative 100 for their net margin and they're not even close to being profitable yet
and this is a company that I would invest in if I wanted to really hit a home run
the reason behind that is the bulk case is that they only have a market penetration rate of three
percent in Africa which is extremely low and shows the amount of growth potential that they have
the problem is in the bear case is that the African continent only has an internet usage
rate of 39 which is way below the global average and for a an e-commerce site access to internet
is critical for their growth so at this point it's a very interesting opportunity they're not
profitable they're not even close but they have such incredible growth potential and so you do
have some of the worries about the claims of them being fraudulent but based off of the companies
that have invested in them in the past I think it's an interesting option so now that I’ve talked
about these six stocks I kind of wanted to rank them and discuss how I feel about each one of them
my first and my favorite overall is going to be JD.com Stock (JD Stock) I think it is
the most interesting company I think it's the most like Amazon Stock (AMZN Stock) based off
of their incredible logistics network which allows them to be more hands-on with the way that their
products are being shipped out they do have the growth potential of their cloud service and
their telehealth coming out in the next couple years so I do think it has a lot of potential
there next up I’m going to go with I’m going to go with Alibaba Stock (BABA Stock) I think
Alibaba Stock (BABA Stock) is still good I think the recent sell-off based off of the jack ma news
uh and the problems with the Chinese government is a little bit worrisome but I don't expect this
to be a crippling part uh and just kind of destroy their business so I’m not super worried about that
next up I’m going to put eBay Stock (EBAY Stock) just based off of their incredibly
high margins and the fact that they've been around forever also they are only up around
like 115 over the past five years so if we do see a market sell-off they're not going to be crushed
by it like something like a an ETSY Stock (ETSY Stock) or a Shopify Stock (SHOP Stock) they're
up thousands of percent so then after that I will put Shopify Stock (SHOP Stock) I think
it's very interesting based off of their recurring payments but I do have a lot of
worries about their long-term health of the company and then finally I’m going to put
ETSY Stock (ETSY Stock) at the bottom just because it's not something I’ve used and I think it might
be a little bit more of a fad that's something like a Shopify Stock (SHOP Stock) and then
finally I’ll put Jumia Stock (JMIA Stock) at the bottom just because it does have a lot of risk but
this is a company that has a lot of risk but a lot of potential if it does very well considering
that it has not seen the explosive growth that the other e-commerce stocks have seen so far
so I’m very curious what you thought about these companies on this list and let me know
if you'd ever consider buying these stocks over a giant like Amazon Stock (AMZN Stock) thanks
for watching this video I appreciate all support and I will see you in the next video