It was another record-breaking year this American Thanksgiving Weekend for the e-commerce industry. By Monday morning, online sales already reached $531 million, and by the end of the day they had hit a whopping $7.8 billion in sales, according to Adobe Analytics.
That’s just the beginning, as mobile devices also saw a huge jump. Of that $7.8 billion, $2.2 billion was spent purchasing through a mobile device. This is up 55.6% from last year.
So what companies came out on top during Cyber Monday, and what does that mean for your stock portfolio? We cover two big businesses you’ll want to consider.
It’ll come as no surprise that this had a successful Black Friday and Cyber Monday. Amazon (NASDAQ:AMZN) captured almost half of all online sales this year, making it the biggest shopping day in the company’s history. The holiday was a true test to its online platforms and delivery service, one Amazon passed with flying colours. This confidence translated right over to the markets, with shares in Amazon closing 5% higher than the previous day. But should you buy it based on one day?
The answer is obviously “no,” but there are definitely other reasons to consider adding Amazon to your portfolio. The company has been ahead of the e-commerce industry since its birth, and that continues today. Amazon recently made its debut in the Robotics as a Service (RaaS) market, a smart move with the growing demand for robots in the household, office and warehouse. The company is also the third-largest digital ad platform in the United States, setting itself up to double its revenue this year to $5.83 billion, according to eMarketer.
Yet Amazon still joins the other FAANG members of the tech industry in suffering recently, and has dropped over 20% since summer highs. But investors should take note of two things: today’s stock price is still an increase of 35% since the beginning of the year.
Shopify (TSX:SHOP)(NYSE:SHOP) may not have the big guns of Amazon, but don’t underestimate this fast-growing company. Sales on Black Friday and Cyber Monday were enormous for Shopify, with $1.5 billion in sales (66% of which were on mobile).
Amazon depends on its own site, but not Shopify. The subscription-based company has more than 2,200 apps registered in the App store, making mobile shopping easy for consumers. Shopify continues to look for new ways of enhancing the customer experience, rolling out products like Shopify AR, where consumers can view products in 3D. And, of course, Shopify will be processing the sales of marijuana from B.C., Newfoundland and Labrador, Ontario and P.E.I. since legalization.
Investors have been taking a with Shopify, seeing the tech industry decline in the past few months. Yet shares of Shopify have gone up almost 45% since the beginning of the year. Granted, during that year Shopify has gone up and down like a rollercoaster. The company is still just a baby with a lot of potential, but also a lot of volatility while they expand and grow their operations. For those willing to ride the wave, the company’s earnings are expected to grow 93.7% and 116.9% in 2018 and 2019, respectively, according to Zacks Consensus Estimates.