In this article, we will discuss the 5 best e-commerce stocks to buy now. If you want to explore similar stocks, you can read 15 Best E-Commerce Stocks to Buy Now.

5. JD.com, Inc. (NASDAQ:JD)

Number of Hedge Fund Holders: 67

JD.com, Inc (NASDAQ:JD) is a leading Chinese e-commerce company that offers a wide range of products, including electronics, apparel, home appliances, and other products. Founded in 2006, JD.com, Inc. (NASDAQ:JD) has grown to become one of the largest e-commerce companies in China and the world. The company’s business model is based on providing customers with a convenient, secure, and cost-effective shopping experience. JD.com, Inc. (NASDAQ:JD) has a robust and growing presence in China’s e-commerce market and is ranked high among the best e-commerce stocks to buy now since the company is uniquely positioned to capitalize on the rapid growth of China’s e-commerce market.

Wall Street is bullish on JD.com, Inc. (NASDAQ:JD). This November, Citi analyst Alicia Yap raised her price target on JD.com, Inc. (NASDAQ:JD) to $90 from $85 and reiterated a Buy rating on the shares. On November 21, Barclays analyst Jiong Shao raised his price target on JD.com, Inc. (NASDAQ:JD) to $72 from $59 and maintained an Overweight rating on the shares.

At the end of Q3 2022, 67 hedge funds were long JD.com, Inc. (NASDAQ:JD) and disclosed positions of $3.71 billion in the company. Of those, Tiger Global Management LLC was the top investor in the company and held a position worth $1.50 billion.

4. Walmart Inc. (NYSE:WMT)

Number of Hedge Fund Holders: 68

Walmart Inc. (NYSE:WMT) is one of the largest retail companies in the world, and its e-commerce business is a key component of its success. Walmart Inc. (NYSE:WMT) has been able to leverage its brick-and-mortar presence and large customer base to create an online shopping experience that is both convenient and cost-effective. The company offers a wide variety of products, ranging from groceries and apparel to electronics and home goods. Walmart Inc. (NYSE:WMT) has a strong competitive advantage in the e-commerce market due to its size and scale and is therefore placed among the best e-commerce stocks to buy now.

On November 17, Credit Suisse analyst Robert Moskow raised his price target on Walmart Inc. (NYSE:WMT) to $160 from $145 and maintained an Outperform rating on the shares. This November, Morgan Stanley analyst Simeon Gutman raised his price target on Walmart Inc. (NYSE:WMT) to $164 from $150 and reiterated an Overweight rating on the shares.

At the close of Q3 2022, 68 hedge funds were bullish on Walmart Inc. (NYSE:WMT) and held stakes worth $4.08 billion. This is compared to 67 positions in the previous quarter with stakes worth $3.78 billion. The hedge fund sentiment for the stock is positive. As of September 30, Fisher Asset Management is the dominant shareholder in the company and has a position worth $1.05 billion.

Here is what Leaven Partners had to say about Walmart Inc. (NYSE:WMT) in its third-quarter 2022 investor letter:

“In our last quarterly letter, I briefly mentioned that the consensus estimates for corporate profits appeared to be a bit too sanguine. I referenced a Reuters article that reported, as of June 17, Wall Street expected S&P 500 earnings to grow by 9.6% in 2022, which was up from 8.8% in April and from 8.4% in January. That tune began to change at the end of July and accelerated in August and September, as major players, such as Walmart (NYSE:WMT), has recently issued profit warnings and/or have withdrawn guidance. In response, Wall Street has altered its outlook: lowering third-quarter profit growth to 4.6%^[2] from 7.2% in early August and slashing full-year profit growth to 4.5%.”

3. Mercadolibre, Inc. (NASDAQ:MELI)

Number of Hedge Fund Holders: 81

Mercadolibre, Inc. (NASDAQ:MELI) operates one of the most popular e-commerce platforms in Latin America and is placed third among the best e-commerce stocks to buy now. The company has a strong presence in 18 countries and has made several strategic moves to expand its presence in the Latin American market, including strategic acquisitions, launching new products and services, and entering new markets. The company is well-positioned to benefit from the ongoing digital transformation in the Latin American market, which is driving customers to shift more of their shopping online.

On October 6, Jefferies analyst John Colantuoni revised his price target on MercadoLibre, Inc. (NASDAQ:MELI) to $970 from $990 and reiterated a Hold rating on the shares. On November 3, Citi analyst Joao Pedro Soares updated his price target on MercadoLibre, Inc. (NASDAQ:MELI) to $1,050 from $1,150 and maintained a Buy rating on the shares.

At the end of Q3 2022, 81 hedge funds held stakes in Mercadolibre, Inc. (NASDAQ:MELI). The total value of these stakes amounted to $3.25 billion, up from $2 billion in the previous quarter with 68 positions. The hedge fund sentiment for the stock is positive. As of September 30, Generation Investment Management is the largest shareholder in the company and has a position worth $565.5 million.

Here is what SaltLight Capital had to say about MercadoLibre, Inc. (NASDAQ:MELI) in its third-quarter 2022 investor letter:

“Despite the economic slowdown in developed markets, our Latin American investment in MercadoLibre, Inc. (NASDAQ:MELI) had another outstanding third quarter growing revenues by 61% on a USD FX-neutral basis (GMV +32% FXN). Despite this strong growth, it also managed to expand operating profit margins to 11% (compare this to Amazon which is struggling to make a profit in its retail business).

LatAm’s e-commerce penetration is still very low compared to Asia and developed markets. MELI is mostly a marketplace but has also adopted models from elsewhere. In the recent past, it has built 3^rd party seller infrastructure that has made Amazon so successful, and it is also heavily investing in a mobile based fintech infrastructure very similar to ANT Group in China. After only launching a couple of quarters ago, their advertising business is already at 1.3% of Gross Merchandise Value.”

2. Alibaba Group Holding Limited (NYSE:BABA)

Number of Hedge Fund Holders: 105

Alibaba Group Holding Limited (NYSE:BABA) is one of the largest and most successful e-commerce companies in the world. With a vast network of customers, suppliers, and partners, Alibaba Group Holding Limited (NYSE:BABA) has a dominant market share in China and is rapidly expanding internationally. The company is technology-driven and is investing heavily in advanced technologies such as artificial intelligence, cloud computing, and the Internet of Things. This enables Alibaba Group Holding Limited (NYSE:BABA) to better serve its customers and gain a competitive edge. The company is well-positioned to benefit from the long-term growth opportunities in the Chinese economy and from the growth of the global digital economy. Alibaba Group Holding Limited (NYSE:BABA) is one of the best e-commerce stocks to buy now.

On November 18, Truist analyst Youssef Squali updated his price target on Alibaba Group Holding Limited (NYSE:BABA) to $120 from $125 and reiterated a Buy rating on the shares. This November, UBS analyst Jerry Liu revised his price target on Alibaba Group Holding Limited (NYSE:BABA) to $135 from $140 and maintained a Buy rating on the shares.

At the close of the third quarter of 2022, 105 hedge funds were eager on Alibaba Group Holding Limited (NYSE:BABA) and held collective stakes worth $4.14 billion. Of those, Generation Investment Management is the top investor in the company and has a position worth $360.7 million.

Here is what Polen Capital had to say about Alibaba Group Holding Limited (NYSE:BABA) in its third-quarter 2022 investor letter:

“Alibaba Group Holding Limited (NYSE:BABA) is the leading e-commerce company in China. The stock was weak over the quarter as they reported a quarterly revenue decline. The company has been heavily impacted by the continued covid-19 lockdowns throughout China and the aggressive rate increases and deteriorating outlook for China’s economy have weighed heavily on the stock. The share price has also been under pressure due to the U.S. Securities and Exchange Commission’s plans to delist Chinese tech stocks in 2024 if they do not provide access to audit files.”

1. Amazon.com, Inc. (NASDAQ:AMZN)

Number of Hedge Fund Holders: 269

Amazon.com, Inc. (NASDAQ:AMZN) is a clear leader in the e-commerce and cloud computing spaces, giving it a first-mover advantage in two rapidly growing industries. The company has poured hefty investments into its logistics infrastructure, giving it the ability to offer same-day and even same-hour delivery to customers. Amazon.com, Inc. (NASDAQ:AMZN) is well-positioned to take advantage of the increasing shift to online shopping and is placed high on our ranking of the best e-commerce stocks to buy now.

On October 27, Amazon.com, Inc. (NASDAQ:AMZN) posted earnings for the third quarter of fiscal 2022. The company generated a revenue of $127.10 billion, up 14.70% year over year, and reported an EPS of $0.28, beating expectations by $0.07.

On November 30, JMP Securities analyst Nicholas Jones reiterated an Outperform rating and his $140 price target on Amazon.com, Inc. (NASDAQ:AMZN). This November, MoffettNathanson analyst Michael Morton took coverage of Amazon.com, Inc. (NASDAQ:AMZN) with an Outperform rating and a $118 price target.

At the end of the third quarter of 2022, 269 hedge funds were long Amazon.com, Inc. (NASDAQ:AMZN) and disclosed positions worth $34.6 billion. This is compared to 252 hedge funds in the previous quarter with positions worth $30 billion. The hedge fund sentiment for the stock is positive. As of September 30, Fisher Asset Management is the dominant shareholder in the company and has stakes worth $5.63 billion.

Here is what Alger Capital had to say about Amazon.com, Inc. (NASDAQ:AMZN) in its third-quarter 2022 investor letter:

“Amazon.com, Inc. (NASDAQ:AMZN) is a well-known online retailer and cloud computing leader. The company’s amazon web services business provides utility-scale cloud offerings that facilitate corporate America’s transition to digital systems. Shares outperformed during the quarter as investors were encouraged by strong second-quarter performance despite a challenging macroeconomic environment. Moreover, the company’s retail segment was resilient and avoided discounting inventory like some major retailers did. Revenues for the company’s cloud computing segment, amazon web services (AWS), grew faster than analysts’ estimates during the quarter due to continuing corporate demand for digitization. As a result, management provided better-than-expected forward guidance.”

You can also take a look at 14 Best Beginner Stocks To Invest In and 10 Best Robinhood Stocks To Buy.