In this article, we will look at the 11 Best Internet Retail Stocks to Buy According to Analysts.
Retail Sales Rise in March Amid Volatile Stock Market
Trade policies and tariffs have dominated the stock market since the beginning of April, resulting in volatility and uncertainty. However, CNBC reported on April 16 that retail sales rose 1.4% in March, surpassing expectations. CNBC reported earlier on April 15 that the March retail sales report had the potential to impact investor positioning and confidence. According to Dow Jones, economists and experts anticipated a 1.2% month-over-month growth.
READ ALSO: 15 Best Blue Chip Stocks to Buy According to Billionaires and Top 10 Restaurant Stocks to Buy Under $20.
CNBC reported that the primary catalyst for this growth is a pull-forward of consumer spending to get ahead of increased good prices brought about by tariffs. It also reported that Freedom Capital Markets chief global strategist Jay Woods opined that retail stocks could undergo a short-term bounce if the retail sales report were in line or better than expected. He said:
“Some of these names have gotten way too far ahead of themselves on the downside that bounces are natural. They’ve gotten beaten down and mean reversion could lead to a nice rally over the coming days.”
Callie Cox, chief market strategist of Ritholtz Wealth Management, expressed similar sentiments, saying a strong retail sales report could potentially lead to a rise in consumer discretionary stocks.
“Consumer Discretionary stocks have been hit so hard that they may be more susceptible to a relief rally on the back of a retail sales report that doesn’t show the economy is falling apart,” said Cox.
With the retail sales report exceeding expectations, these analyst opinions could potentially come true. So let’s look at the 11 best internet retail stocks to buy according to analysts.
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Our Methodology
We sifted through stock screeners, financial media reports, and ETFs to compile a list of 30 internet retail stocks and chose the top 11 with the highest analyst upside potential as of April 17, 2025. We also added the number of hedge fund holders for each stock as of Q4 2024. We sourced the hedge fund sentiment data from Insider Monkey’s database. The list is ordered in ascending order of analyst upside.
Why are we interested in the stocks that hedge funds pile into? The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter’s strategy selects 14 small-cap and large-cap stocks every quarter and has returned 373.4% since May 2014, beating its benchmark by 218 percentage points (see more details here).
11 Best Internet Retail Stocks to Buy According to Analysts
11. Revolve Group, Inc. (NYSE:RVLV)
Analyst Upside: 47.43%
Number of Hedge Fund Holders: 24
Revolve Group, Inc. (NYSE:RVLV) is an online fashion retailer for Gen Z and millennial consumers. Its operations are divided into Forward (FWRD) and Revolve segments. The Revolve segment offers apparel, footwear, accessories, and beauty products, while the FWRD segment offers luxury brands. The company sells all its products exclusively online, ranking it 11th on our list of the best internet retail stocks to buy according to analysts.
On March 14, Jefferies analyst Randal Konik upgraded Revolve Group, Inc. (NYSE:RVLV) to Buy from Hold after meeting with management, keeping an unchanged price target of $30. The firm expressed optimistic sentiments for the company, saying that its personalization and AI enhancements, physical retail expansion, owned-brand expansion, and international runway have the potential to support sustainable growth. The analyst further told investors in a research note that the recent pullback in Revolve Group, Inc.’s (NYSE:RVLV) shares offers investors a “compelling entry” point.
10. Amazon.com, Inc. (NASDAQ:AMZN)
Analyst Upside: 49.14%
Number of Hedge Fund Holders: 339
Amazon.com, Inc. (NASDAQ:AMZN) is a multinational technology company that offers online retail shopping services. It operates through the North America, International, and Amazon Web Services segments. AWS’s segment covers global sales of storage, computers, databases, and other services for government agencies, academic institutions, startups, and enterprises.
On April 10, Telsey Advisory analyst Joe Feldman maintained a Buy rating on Amazon.com, Inc. (NASDAQ:AMZN) and set a $275.00 price target. It is the 10th best internet retail stock to buy according to analysts, and its median price target implies a 49.14% upside from current levels.
Amazon.com, Inc.’s (NASDAQ:AMZN) e-commerce standing lends it a significant competitive advantage, as it holds nearly 38% of all e-commerce sales in the US. According to the Boston Consulting Group, e-commerce is expected to continue growing as a percentage of retail sales, reaching around 41% of global retail sales by 2027. This is anticipated to prove substantially beneficial for Amazon.com, Inc. (NASDAQ:AMZN).
The company is also heavily investing in AI. Its capital expenditures (capex) for 2025 are anticipated to be around $100 billion, most of which would go to AI. The company also said that falling AI inference expenses would fuel increased AI infrastructure spending. Ariel Appreciation Fund stated the following regarding Amazon.com, Inc. (NASDAQ:AMZN) in its Q4 2024 investor letter:
“During the quarter, we initiated three new investments, each in companies we have followed closely for a considerable time. At various points, we viewed them as missed opportunities; however, our experience with Mr. Market has taught us that patience often creates inevitable entry points. This quarter, some exciting opportunities presented themselves. The three investments are Amazon.com, Inc. (NASDAQ:AMZN), Diageo (NYSE: DEO), and Uber (NASDAQ: UBER). We will discuss each in detail below.
Amazon is one of the most widely followed companies in the world. While the “Magnificent 7” (of which Amazon is a key member) is often seen as a runaway freight train, we were able to purchase Amazon shares at prices last seen in 2021—three years ago. How is this possible if the “Mag7″ has been so dominant? We believe it largely reflects the increasing prevalence of narratives driving market sentiment…” (Click here to read the full text)
9. JD.com, Inc. (NASDAQ:JD)
Analyst Upside: 56.37%
Number of Hedge Fund Holders: 78
JD.com, Inc. (NASDAQ:JD) is an e-commerce company that deals with online retail and online marketplace through its retail website and mobile application. Its operations are divided into four segments: JD Retail, JD Logistics, Dada, and New Businesses segment. The JD Retail segment is engaged in online retail, marketing services, and online marketplace in China, while the JD Logistics segment covers internal and external logistics businesses. The Dada segment is a local on-demand delivery and retail platform in China. The New Businesses segment, in contrast, manages JD Property, Jingxi, and overseas businesses.
On April 16, analyst Joyce Ju from Bank of America Securities reiterated a Buy rating on JD.com Inc. (NASDAQ:JD) and set a $48.00 price target. According to the analyst, the company is anticipated to attain double revenue growth in Q1 2025, supported by growth in sales of home appliances, electronics, and general merchandise. The analyst also opined that a favorable product mix and improved supply chain efficiencies are further expected to boost JD.com Inc.’s (NASDAQ:JD) profitability.
JD.com, Inc. (NASDAQ:JD) has strong operations. For fiscal Q4 2024, the company reported net revenues of around $147.5 billion, reflecting a 13.4% increase from fiscal Q4 2023. The company is also expanding its JD Logistics segment globally, as it is a significant component of JD.com, Inc. (NASDAQ:JD) ‘s overall success. It is doubling its warehouse capacity by 2025 and is focusing investments on AI and automation to boost efficiency and streamline customer experience. These technologies include 5G-powered smart logistics parks and intelligent warehousing systems.
8. Alibaba Group Holding Limited (NYSE:BABA)
Analyst Upside: 57.54%
Number of Hedge Fund Holders: 107
Alibaba Group Holding Limited (NYSE:BABA) manages and provides technology infrastructure and marketing platforms. It operates through seven segments: China Commerce, International Commerce, Local Consumer Services, Cainiao, Cloud, Digital Media and Entertainment, and Innovation Initiatives and Others segments.
The company has made significant adjustments to its business model, including reducing prices, using AI to enhance user experience, and shifting its focus from consumers to merchants. Analysts are bullish on the stock, ranking it eighth on our list of the best internet retail stocks to invest in.
Alibaba Group Holding Limited (NYSE:BABA) is actively expanding its Cloud Intelligence Group, which underwent triple-digit percentage revenue growth year-over-year for six consecutive quarters in fiscal Q3 2025. The company also experienced an 11% overall revenue growth in the quarter. On March 28, Mizuho analyst James Lee expressed optimism for Alibaba Group Holding Limited’s (NYSE:BABA) AI strategy, opining that it positions the company for improved product experiences and enhanced internal productivity.
7. PDD Holdings Inc. (NASDAQ:PDD)
Analyst Upside: 65.67%
Number of Hedge Fund Holders: 85
PDD Holdings Inc. (NASDAQ:PDD) is a Chinese multinational online commerce group and retailer that owns and operates a range of diverse businesses. It also has a strong logistics, sourcing, and fulfillment capabilities network that supports its operations. The company owns Pinduoduo, a popular online commerce platform in China, and also runs the fast-growing e-commerce marketplace Temu. Temu now operates in more than 50 countries worldwide.
Analysts are bullish on PDD Holdings Inc. (NASDAQ:PDD) and expect it to grow due to market share gains in China. Its continued expansion into international markets through the Temu platform is anticipated to accelerate and support this growth.
PDD Holdings Inc. (NASDAQ:PDD) is focusing on a high-quality development strategy and has been actively optimizing its platform ecosystem to deliver impactful results over the long run. This strategy has helped the company report impressive financial results. The company delivered 24% year-over-year revenue growth in fiscal Q4 2024, reaching RMB 110.6 billion. Revenue for the full year 2024 reached RMB 393.8 billion, representing a 59% year-on-year increase.
PDD Holdings Inc. (NASDAQ:PDD) also undertook various initiatives in H2 2024 to advance its high-quality development strategy and boost growth, including logistic support measures for e-commerce services in remote regions, a 10 billion fee reduction program, and a high-quality merchant support program. GreenWood Investors stated the following regarding PDD Holdings Inc. (NASDAQ:PDD) in its Q4 2024 investor letter:
“Aside from transitory foreign exchange translation losses (as opposed to trading losses), the two other notable detractors from our portfolio were MEI Pharma and PDD Holdings Inc. (NASDAQ:PDD) in 2024.
PDD Holdings founder Colin Huang is who inspired us to “run 3x faster,” as the relentless corporate culture of PDD has built an e-commerce company with roughly the same GMV (gross merchandise value) of Amazon in one-third the time it took Amazon to build itself. Shares reacted negatively when the company decided to reinvest its record margins into even faster growth and creating a healthier supplier ecosystem. As it looks set to create a second Amazon with its international site Temu, we are highly attracted to the opportunity. Sales are growing 4x faster than Amazon’s, yet shares are priced at less than a quarter of the Amazon earnings multiple.
PDD is a perfect example of why we want to look outside of the “Big Ten” companies that are nearly a third of global market indices. We would not want to compete with the demanding corporate culture of PDD and Temu. Its operating model is relentless at identifying efficiency throughout the manufacturing and selling supply chain. Not only is it a more formidable competitor than Amazon, and growing much faster, but the valuation is 4x more attractive than Amazon’s…” (Click here to read the full text)
6. Jumia Technologies (NYSE:JMIA)
Analyst Upside: 79.27%
Number of Hedge Fund Holders: 14
Jumia Technologies (NYSE:JMIA) operates an e-commerce platform that connects consumers and sellers through logistics, payment, and marketplace services. The company’s platform operates in the Middle East and Africa and offers digital services and products, including fashion, smartphones, apparel, electronics, and financial solutions.
The company experienced an 18% year-over-year growth in its physical goods orders in December, reflecting the growing demand on its platform. Jumia Technologies (NYSE:JMIA) anticipates growth between 15% and 20% year over year in the Physical Goods Order segment, supported by enhanced customer and seller experience, upcountry expansion, and product assortment expansion achieved through international sourcing.
Its core marketplace business also grew in fiscal Q4 2024, with quarterly active customers increasing by 8%. Jumia Technologies (NYSE:JMIA) achieved these results while reducing its marketing spend from $6.2 million in fiscal Q4 2023 to $4.8 million in fiscal Q4 2024. The company takes the sixth spot on our list of the top internet retail stocks to buy according to analysts.
5. Wayfair Inc. (NYSE:W)
Analyst Upside: 86.95%
Number of Hedge Fund Holders: 49
Wayfair Inc. (NYSE:W) offers a range of decor, furniture, housewares, and home improvement products through its e-commerce platform. Its family of brands includes Birch Lane, Wayfair, AllModern, Joss & Main, Perigold, and Wayfair Professional. The company also offers products under its house brands, such as Mercury Row and Three Posts. Its operations are divided into US and International segments.
In a report released on April 14, Youssef Squali from Truist Financial maintained a Buy rating on Wayfair Inc. (NYSE:W), setting a $36 price target. Analysts are also bullish on the stock, as it is currently at its strongest balance sheet position in many years. It paid a significant portion of its 2025 and 2026 upcoming convertible maturities at an attractive discount and holds around $2 billion of total liquidity.
Its Q4 2024 results also showed optimistic signs, with net revenue showing positive year-over-year growth. This was attributed to notable performance in its US segment, which rose by over 1% in the quarter. Wayfair Inc.’s (NYSE:W) positive results allowed it to drive $100 million of adjusted EBITDA in fiscal Q4 2024, and deliver on its goal of around 50% year-over-year dollar growth for 2024. The company’s solid financial performance allowed it to tap into the high-yield markets, bolstering its capital structure. It ranks fifth on our list of the top internet retail stocks to invest in now.
4. Global-E Online Ltd. (NASDAQ:GLBE)
Analyst Upside: 87.50%
Number of Hedge Fund Holders: 31
Global-E Online Ltd. (NASDAQ:GLBE) supports direct-to-consumer cross-border e-commerce through its e-commerce platform, Global-E. The platform leverages international logistics, localization capabilities, and big data business intelligence models to allow brands and retailers to improve international traffic conversion and sales and boost global online growth. The company’s operations are conducted from seven offices across the globe, and it takes the fourth spot on our list of the best internet retail stocks to buy now.
Morgan Stanley analyst James Faucette reiterated a Buy rating on Global-E Online Ltd. (NASDAQ:GLBE) on April 10, setting a $46.00 price target. The analyst attributed various factors to the firm’s bullish sentiment, saying that the company’s online web traffic showed considerable growth in fiscal Q1 2025, surpassing Morgan Stanley’s revenue growth and GMV expectations. These trends demonstrate strong potential for positive financial performance in the future, irrespective of the current macroeconomic uncertainties. The analyst said that the significant growth in web traffic could translate to higher sales figures, as it means that the company is experiencing rising consumer interest.
The analyst also opined that Global-E Online Ltd. (NASDAQ:GLBE) could potentially benefit from the recent tariff changes. The complex scenario created by the tariffs may support the company by improving its value proposition to merchants facing these challenges. The volatile market circumstances are thus expected to increase merchandise partnerships with Global-E Online Ltd. (NASDAQ:GLBE), expanding its market reach.
3. Baozun Inc. (NASDAQ:BZUN)
Analyst Upside: 99.52%
Number of Hedge Fund Holders: 8
Baozun Inc. (NASDAQ:BZUN) provides brand e-commerce services and solutions, including appliances, accessories, apparel, home and furnishing, food and health items, cosmetics, and more. In a report released on March 24, Saiyi He from CMB International Securities maintained a Buy rating on Baozun Inc. (NASDAQ:BZUN) and set a price target of $3.53. The analyst opined that the company holds the potential for improved profitability and growth, as its recent financial results surpassed Bloomberg’s consensus expectations with a total revenue of RMB 3.0 billion. While the non-GAAP net profit remained below expectations, it exhibited improvement compared to last year.
In addition, the firm said that Baozun Inc.’s (NASDAQ:BZUN) E-commerce and Brand Management segments also underwent growth, proving to be significant factors contributing to this optimistic outlook. This growth was supported by strategic efforts to optimize merchandising plans and higher demand for IT and digital marketing solutions.
The analyst expects Baozun Inc. (NASDAQ:BZUN) to further improve in 2025, with a focus on achieving loss reduction and revenue growth for Baozun Brand Management and boosting operating efficiency for Baozun E-commerce. The firm anticipates Baozun Brand Management to reach a breakeven point by the end of 2025. According to analysts, Baozun Inc. (NASDAQ:BZUN) is the third best internet retail stock to buy.
2. Beyond, Inc. (NYSE:BYON)
Analyst Upside: 116.80%
Number of Hedge Fund Holders: 19
Beyond, Inc. (NYSE:BYON) is an affinity company focused on e-commerce that owns or holds ownership interests in several retail brands, including Bed Bath & Beyond, Overstock, Zulily, and related brands and websites. In a report released on March 19, Michael Pachter from Wedbush reiterated a Buy rating on Beyond, Inc. (NYSE:BYON) and set a price target of $15.00. CNN reported on March 11 that Maxim Group analyst Tom Forte also maintained their bullish stance on the company, giving it a Buy rating on February 25.
Tom Forte expressed optimism regarding the recent management changes at Beyond, Inc. (NYSE:BYON), opining that they will expedite its growth towards sustainable profitability. He saw the management changes as positive steps towards enhancing the company’s financial metrics, especially adjusted EBITDA and gross margin.
While the analyst acknowledges the external market challenges faced by Beyond, Inc. (NYSE:BYON), especially in the Home category, he is optimistic about its leadership’s ability to navigate these challenges. He set a price target of $16 for the stock, reflecting his confidence in the company’s leadership and its long-term strategy to attain profitability. Beyond, Inc. (NYSE:BYON) ranks second on our list of the best internet retail stocks to invest in according to analysts.
1. 1stdibs.com, Inc. (NASDAQ:DIBS)
Analyst Upside: 236.13%
Number of Hedge Fund Holders: 7
1stdibs.com, Inc. (NASDAQ:DIBS) operates an online interior design, fashion, and home decorations marketplace. The company facilitates e-commerce sales by providing access to a global community of buyers and sellers. Its offerings include a range of antique, vintage, and contemporary furniture, fashion items, art, watches, jewelry, and more. The company operates under two business units: 1stdibs and Design Manager.
Relative to 2023, the company’s revenue grew by $3.6 million while adjusted EBITDA rose by $5.3 million due to expense reductions and high incremental flow-through. These trends demonstrate 1stdibs.com, Inc.’s (NASDAQ:DIBS) operating leverage potential. After resetting its expenses in 2022 and 2023, the company’s profitability depends upon maintaining operating leverage and sustaining revenue growth.
Around 60% of 1stdibs.com, Inc.’s (NASDAQ:DIBS) operating expenses are related to headcount, and the company’s plans for 2025 entail keeping headcount flat and unlocking operating leverage at mid-single-digit revenue growth. In a report released on March 3, Mark Mahaney from Evercore ISI maintained a Buy rating on the stock and set a price target of $8.00.
Overall, DIBS ranks first among the 11 best internet retail stocks to buy according to analysts. While we acknowledge the potential of internet retail stocks, our conviction lies in the belief that AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. There is an AI stock that went up since the beginning of 2025, while popular AI stocks lost around 25%. If you are looking for an AI stock that is more promising than DIBS but that trades at less than 5 times its earnings, check out our report about this cheapest AI stock.
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