3 Top E-Commerce Stocks to Buy in November | The Motley Fool

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These companies have powerful positions in e-commerce and much to gain as the industry expands.

One of the best tips for investing in the stock market is to choose companies that are active in industries that are likely to expand over the long term. E-commerce is an attractive growth market: Online sales made up just 4% of all U.S. retail purchases in 2010, but that figure has soared to more than 15% this year. The sector has massive growth potential and could have much to offer new investors.

As tech advances and sectors like artificial intelligence (AI) create more efficient ways to target customers and track shopping trends, e-commerce companies will likely continue to benefit from consistent gains. The industry presents an exciting investment opportunity with several stocks that could skyrocket in the coming years.

So, here are three top e-commerce stocks to buy in November.

It’s impossible to overlook Amazon (AMZN 2.12%), with its leading 38% e-commerce market share in the U.S., in any discussion about e-commerce. Its dominance in the space is illustrated by the fact that Walmart’s share, the second largest, comes in at just 6%.

Amazon’s command of the market left it vulnerable to macroeconomic headwinds in 2022, causing steep declines in its retail segments. However, its various restructuring moves have led to a solid comeback this year, returning its e-commerce business to profitability. The company’s North American segment topped $4 billion in operating income in the third quarter, a significant improvement from the $412 million in losses it reported in the year-ago quarter.

Meanwhile, Amazon’s growing ventures in AI strengthen its long-term prospects in retail. The company is developing the tech necessary to boost efficiency across its business and better serve customers. Amazon is on a promising growth path, and you won’t want to miss out on its potential in e-commerce.

Apple (AAPL 1.45%) might not be the first company that comes to mind when thinking about e-commerce, but the potency of its products has allowed it to attain the third-largest market share in the industry. Its position in the sector is impressive, considering its range of products is substantially smaller than those of market leaders Amazon and Walmart.

Apple has won over consumers, achieving leading market shares in smartphones, tablets, headphones, and smartwatches. The success of these devices propelled Apple’s annual revenue to soar 47% over the last five years, with operating income up 79%. Sales in these product categories have decreased over the last year, affected by a marketwide slump. However, Apple’s dominance means it is well positioned to profit significantly once macroeconomic headwinds subside.

In the meantime, Apple is gradually expanding its reach in e-commerce by venturing into fintech. Over the last few years, the company has launched its own credit card, a savings account, and a new buy now pay later program.

As the biggest name in consumer tech, Apple dominates one of the most lucrative areas of e-commerce. Its stock has slid by 9% since July alongside economic challenges, but that only makes it more attractive as a long-term buy this November.

Countless e-commerce businesses have come to depend on Alphabet’s (GOOG 0.72%) (GOOGL 0.55%) advertising services to reach new customers and boost sales. The company has much to gain as online retail sales grow and is well-equipped to meet increased demand for digital ads with the billions of users it attracts through platforms like YouTube and Google Search daily.

Alphabet has become a master at advertising over the years, offering clients advanced targeting services and tools to create scalable ad campaigns. The tech giant’s success in the industry sent its annual revenue skyrocketing 107% since 2019, while operating income rose 130%.

Like Amazon, Alphabet is heavily investing in AI, developing technology to improve its business and retain its dominating position in advertising by offering top-of-the-line services. The company’s solid outlook caught Wall Street’s attention this year, with its share up about 47% since Jan. 1.

Yet, despite the stellar growth, Alphabet’s price-to-earnings ratio sits at an attractive 25. The metric makes Alphabet’s stock a bargain right now and too good to pass up.

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