2 Millionaire-Maker E-Commerce Stocks – The Motley Fool

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These stocks report consistent growth and have massive opportunities.
Wouldn’t it be nice to retire with $1 million in the bank? If you invest consistently and over many years, that can be your reality. There are no guarantees, but the earlier you start and the more consistently you invest, the more likely it’s something that can happen.
Consider this exercise. If you had invested $25,000 in the S&P 500 30 years ago and added $300 monthly, you’d be a millionaire today. That’s using the average annual S&P 500 return of about 10%.
Not everyone has that much to invest, but if you have an appetite for risk, you could invest in growth stocks that could lead to much higher gains. Consider these two e-commerce powerhouse stocks: MercadoLibre (MELI 0.74%) and Global-e Online (GLBE 0.81%).
Amazon referred to a river in South America before it was co-opted by the largest e-commerce company in the world, but since that name was taken, Latin America has its own e-commerce giant. MercadoLibre has developed into an e-commerce powerhouse that’s taking a page out of Amazon’s playbook and is expanding into new areas, and it’s become a formidable growth company.
MercadoLibre has been around almost as long as Amazon, but it’s still demonstrating incredible growth. Revenue increased 94% year over year (currency neutral) in the 2024 first quarter, driven by both e-commerce and its newer fintech business.
Despite pressure in Argentina, which is one of MercadoLibre’s three largest markets, the e-commerce business has been reporting strong performance. Gross merchandise volume increased 71% year over year in the first quarter, with momentum across the board. Items sold increased 25%, and unique buyers increased 16%. Items sold per unique buyer were up 7%.
Same and next-day penetration was stable year over year at 52%, and that was impacted by buyers choosing slow shipping, a MercadoLibre innovation where Meli+ members can choose a weekly delivery day. Ultimately, that’s good for MercadoLibre’s expense control.
The major growth, though, is happening in fintech. MercadoLibre has an expanding fintech segment that provides digital payments and credit products. Total payment volume increased 86% year over year. Monthly active users were up 38% over last year, and assets under management increased 90% to more than $5.5 billion.
This is just the beginning. MercadoLibre has massive potential, and if you invest now, MercadoLibre stock could supercharge your portfolio.
Unlike most e-commerce companies on this list, Global-e doesn’t sell any retail products. It hosts a cross-border e-commerce platform for retailers who are ready for global operations. But it makes it super easy for any company to access a worldwide audience.
When clients sign up, they integrate Global-e’s platform into their digital e-commerce channels. International customers can checkout in multiple currencies and get instant customs calculations and delivery options. Many clients have benefited from increased global sales after signing up, and it’s a no-brainer tool for retailers looking to boost their top lines.
Global-e has been reporting strong growth, but like most companies, it has been decelerating in the inflationary environment. Sales increased 24% year over year in the 2024 first quarter to $146 million. However management expects things to tick up in the back half of the year as it begins to see more results from its new Shopify product.
Global-e has a partnership with Shopify, and Shopify recently launched a product called Shopify Markets Pro, which is a white-label service of the Global-e platform. This is available to Shopify’s millions of merchants, and management says it’s going well. Global-e also recently started a partnership with Wix.com to offer its services to Wix’s e-commerce clients.
These deals are on top of Global-e’s direct clients, which include many of the world’s top retailers, like Nordstrom and Macy’s as well as high-profile brands like Walt Disney, and recently, Donna Karan. It has a constant supply of new clients in its pipeline to generate growth.
Global-e isn’t profitable yet on a generally accepted accounting principles (GAAP) basis, but it has been steadily improving. Adjusted gross margin expanded from 41.4% last year to 45.3% in the first quarter, and adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) increased from $14.5 million to $21.3 million. Net loss narrowed from $43 million to $32 million.
Global-e is the top player in its industry, and it offers a product that every serious e-commerce retailer would find useful. It’s in growth mode, and sales growth could accelerate in an improved economy. It’s just getting started, and its stock could be part of a millionaire-maker portfolio.
Jennifer Saibil has positions in Global-E Online, MercadoLibre, and Walt Disney. The Motley Fool has positions in and recommends Global-E Online, MercadoLibre, Shopify, Walt Disney, and Wix.com. The Motley Fool has a disclosure policy.
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