The end of the earnings season is always a good time to take a step back and see who shined (and who not so much). Let’s take a look at how online retail stocks fared in Q3, starting with Amazon (NASDAQ: AMZN).

Consumers ever rising demand for convenience, selection, and speed are secular engines underpinning ecommerce adoption. For years prior to Covid, ecommerce penetration as a percentage of overall retail would grow 1-2% annually, but in 2020 adoption accelerated by 5%, reaching 25%, as increased emphasis on convenience drove consumers to structurally buy more online. The surge in buying caused many online retailers to rapidly grow their logistics infrastructures, preparing them for further growth in the years ahead as consumer shopping habits continue to shift online.

The 5 online retail stocks we track reported a strong Q3. As a group, revenues beat analysts’ consensus estimates by 3.5% while next quarter’s revenue guidance was 0.8% below.

In light of this news, share prices of the companies have held steady. On average, they are relatively unchanged since the latest earnings results.

Amazon (NASDAQ: AMZN)

Founded by Jeff Bezos after quitting his stock-picking job at D.E. Shaw, Amazon (NASDAQ: AMZN) is the world’s largest online retailer and provider of cloud computing services.

Amazon reported revenues of $180.2 billion, up 13.4% year on year. This print exceeded analysts’ expectations by 1.2%. Overall, it was a strong quarter for the company with a solid beat of analysts’ EPS estimates and a narrow beat of analysts’ revenue estimates, as Amazon Web Services and North America all beat.

“We continue to see strong momentum and growth across Amazon as AI drives meaningful improvements in every corner of our business,” said Andy Jassy, President and CEO, Amazon.

Interestingly, the stock is up 9.4% since reporting and currently trades at $243.80.

Is now the time to buy Amazon? Access our full analysis of the earnings results here, it’s free for active Edge members.

Best Q3: Carvana (NYSE: CVNA)

Known for its glass tower car vending machines, Carvana (NYSE: CVNA) provides a convenient automotive shopping experience by offering an online platform for buying and selling used cars.

Carvana reported revenues of $5.65 billion, up 54.5% year on year, outperforming analysts’ expectations by 11.1%. The business had an exceptional quarter with an impressive beat of analysts’ revenue estimates and decent growth in its units.

Carvana pulled off the biggest analyst estimates beat and fastest revenue growth among its peers. The company reported 155,941 units sold, up 43.5% year on year. Although it had a fine quarter compared its peers, the market seems unhappy with the results as the stock is down 17.6% since reporting. It currently trades at $291.88.

Is now the time to buy Carvana? Access our full analysis of the earnings results here, it’s free for active Edge members.

Slowest Q3: Revolve (NYSE: RVLV)

Launched in 2003 by software engineers Michael Mente and Mike Karanikolas, Revolve (NASDAQ: RVLV) is a fashion retailer leveraging social media and a community of fashion influencers to drive its merchandising strategy.

Revolve reported revenues of $295.6 million, up 4.4% year on year, falling short of analysts’ expectations by 0.8%. It was a slower quarter as it posted a slight miss of analysts’ revenue estimates.

Revolve delivered the weakest performance against analyst estimates and slowest revenue growth in the group. The company reported 2.75 million active buyers, up 4.5% year on year. Interestingly, the stock is up 7.6% since the results and currently trades at $21.50.

Read our full analysis of Revolve’s results here.

Wayfair (NYSE: W)

Founded in 2002 by Niraj Shah, Wayfair (NYSE: W) is a leading online retailer of mass-market home goods in the US, UK, Canada, and Germany.

Wayfair reported revenues of $3.12 billion, up 8.1% year on year. This result topped analysts’ expectations by 3.4%. Overall, it was a strong quarter as it also produced a solid beat of analysts’ EBITDA estimates and a decent beat of analysts’ revenue estimates.

The company reported 21.2 million active buyers, down 2.3% year on year. The stock is up 14.7% since reporting and currently trades at $99.20.

Read our full, actionable report on Wayfair here, it’s free for active Edge members.

Coupang (NYSE: CPNG)

Founded in 2010 by Harvard Business School student Bom Kim, Coupang (NYSE: CPNG) is an e-commerce giant often referred to as the "Amazon of South Korea".

Coupang reported revenues of $9.27 billion, up 17.8% year on year. This number surpassed analysts’ expectations by 2.7%. It was a very strong quarter as it also put up an impressive beat of analysts’ EBITDA estimates and a decent beat of analysts’ revenue estimates.

The company reported 24.9 million active buyers, up 9.8% year on year. The stock is down 9.3% since reporting and currently trades at $29.15.

Read our full, actionable report on Coupang here, it’s free for active Edge members.

Market Update

Thanks to the Fed’s rate hikes in 2022 and 2023, inflation has been on a steady path downward, easing back toward that 2% sweet spot. Fortunately (miraculously to some), all this tightening didn’t send the economy tumbling into a recession, so here we are, cautiously celebrating a soft landing. The cherry on top? Recent rate cuts (half a point in September 2024, a quarter in November) have propped up markets, especially after Trump’s November win lit a fire under major indices and sent them to all-time highs. However, there’s still plenty to ponder — tariffs, corporate tax cuts, and what 2025 might hold for the economy.

Want to invest in winners with rock-solid fundamentals? Check out our Top 5 Growth Stocks and add them to your watchlist. These companies are poised for growth regardless of the political or macroeconomic climate.

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