3 Unstoppable Internet Retail Stocks To Buy Now: MercadoLibre, Fiverr, And Liquidity Services

Ecommerce, Selling Online, Online Sales, E-Commerce

Brick and mortar retail store closures and social distancing mandates have led to a growing dependence on online marketplaces by consumers and businesses. This “new normal” behavior amid fears surrounding the continued spread of COVID-19 should, we think, continue to fuel the growth potential of internet retail companies. Let’s take a closer look at MercadoLibre (MELI), Fiverr International (FVRR), and Liquidity Services (LQDT) as examples.

The COVID-19 pandemic has left an indelible mark on how the retail landscape operates. From changing shopper habits and preferences to fostering cutthroat competition among retailers, players in the retailing space are moving online en masse and bracing for more disruption. Against this backdrop, we think  internet retail stocks should keep outperforming the broader market.

With government stimulus measures and the resumption of economic activities, consumer spending will likely be revitalized this year. This should bode well for internet marketplaces that have been thriving already because digital commerce represents an unprecedented and growing level of retail consumer activity.  In fact, the surge in online demand could continue for as long as the pandemic persists, adding to what is a much longer-term trend in the increase of internet shopping volume.

The coronavirus pandemic has showcased why online retailers are valuable to consumers and businesses globally. Internet retail companies like MercadoLibre, Inc. (MELI - Get Rating), Fiverr International Ltd. (FVRR - Get Rating), and Liquidity Services, Inc. (LQDT - Get Rating), which have emerged as lifelines to a public wary of health risks, should continue to witness a surge in online shopping traffic.  As such, these stocks have the potential to capitalize on powerful long-term trends and grow their sales and profits for many years.

MercadoLibre, Inc. (MELI - Get Rating)

MELI is an online commerce platform in Latin America. The company operates through segments including  MercadoLibre Marketplace, MercadoPago FinTech, MercadoFondo, and others. It also enables retailers and various consumer brands to promote their products and services on the Internet by providing branding and performance marketing solutions.

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William K. 4 weeks ago Member's comment

Certainly this covid plague is as devastating as a large explosion, just not as destructive to property. And certainly it is almost as deadly to many businesses. There is no question about that. The shift to online shopping is a major change and will probably remain with us if ever this plague finally subsides.

So the organizations able to fill the gap will mostly do quite well, and if they are able to provide better customer service they will probably do very well indeed. So they may be a good long-term investment unless they are already overpriced.