2 E-Commerce Stocks To Avoid In December: Baozun And Blue Apron

NASDAQ: BZUN | Baozun Inc. News, Ratings, and Charts

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The e-commerce industry has been one of the major beneficiaries of pandemic-led changes in consumer behavior. Consumers are depending more now on e-commerce platforms for their day-to-day needs. E-commerce companies like Amazon.com, Inc. (AMZN) and Shopify, Inc. (SHOP) saw record revenues in 2020.

However, not every e-commerce company is performing that well. In fact, some are struggling to maintain and grow their operations or to capitalize on growing e-commerce demand. These companies were not doing well when the pandemic started, and are likely to underperform further with the global economy still in the throes of the pandemic.

Baozun, Inc. (BZUN) and Blue Apron Holdings, Inc. (APRN) are two companies that are currently facing several issues and might not perform well in the near-term.

Baozun, Inc. (BZUN)

BZUN provides e-commerce solutions for brand partners. The company delivers end-to-end services, such as IT infrastructure, online store design, customer service, order fulfillment, etc. BZUN’s stock has declined 16.8% since hitting its high in July.

The company has been shifting from a distribution-based model to a non-distribution model over the last few years. This means that it will no longer be shipping orders for its clients, but instead will let the brands ship their own orders. This move could mean BZUN adds less value to its clients and may reduce the effectiveness of the company’s offerings.

For the third quarter, the company’s total operating expenses increased 20.5% compared to the same period last year. The company’s fulfillment expenses rose 25.9% during the same period.

BZUN’s POWR Ratings are consistent with this bleak outlook. It has an overall rating of “Neutral” with a “D” for Trade Grade. It is ranked #33 of 115 stocks in the China industry. BZUN shares were trading at $36.20 per share on Friday afternoon, down $0.24 (-0.66%). Year-to-date, BZUN has gained 9.30%, versus a 16.03% rise in the benchmark S&P 500 index during the same period.

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Axwell Ax 4 weeks ago Member's comment

No lie.