In this article, we discuss the 5 best internet retail stocks to buy. To go through our analysis of the e-commerce and online retail industry, go directly to the 12 Best Internet Retail Stocks to Buy.
5. Mercadolibre, Inc. (NASDAQ:MELI)
Number of Hedge Fund Holders: 76
MercadoLibre, Inc. (NASDAQ:MELI) is a leading e-commerce technology company in Latin America, headquartered in Buenos Aires, Argentina. It was established in 1999 and operates through its key platforms, MercadoLibre.com and MercadoPago.com. MercadoLibre, Inc. (NASDAQ:MELI) offers a range of solutions for individuals and businesses involved in online buying, selling, advertising, and payment transactions.
As of Q3 2023, the company’s shares were held by 76 prominent hedge funds, with a total value of over $3.38 billion. Generation Investment Management was identified as the largest hedge fund shareholder, holding 480,480 shares valued at $609.19 million.
4. PayPal Holdings Inc. (NASDAQ:PYPL)
Number of Hedge Fund Holders: 78
PayPal Holdings Inc. (NASDAQ:PYPL), headquartered in San Jose, California, operates a technology platform that facilitates digital payments for merchants and consumers globally. The company offers payment services under various brands, including PayPal, Credit, Braintree, Venmo, Xoom, and Zettle.
As of the end of the third quarter of 2023, 78 hedge funds tracked by Insider Monkey reported owning stakes in PayPal Holdings Inc. (NASDAQ:PYPL). The biggest stakeholder of the company was Gavin Baker’s Atreides Management which owns a $244 million stake in PayPal Holdings Inc (NASDAQ:PYPL).
Wedgewood Partners stated the following regarding PayPal Holdings Inc. (NASDAQ:PYPL) in its fourth quarter 2023 investor letter:
“PayPal Holdings Inc. (NASDAQ:PYPL) also contributed less to portfolio performance than most holdings during the fourth quarter. The total payment volume handled by PayPal during its most recent quarter grew +15%, which helped drive healthy revenue growth and +20% earnings per share growth. Critically, the Company’s new management team has significant opportunity to drive more revenue and earnings growth across the massive, multi-trillion-dollar payments addressable market. PayPal’s rapidly growing payment processing brand, Braintree, represents one of those revenue growth opportunities, either by raising prices, as the Company had previously used a low-price strategy to establish a beachhead in this market, or by adding value-added services. PayPal’s branded checkout remains the largest volume and profit driver for the business, and we expect this to continue to track in-line with e-commerce growth in the near term, and eventually take share as the Company rolls out new features to its over +400 million users and +30 million merchants. We added to our position with the stock trading at just 10X forward earnings estimates during the quarter because there are many more long-term growth opportunities relative to most financial companies that trade for similar multiples and compared to technology companies that trade for much higher multiples.”
3. Walmart Inc. (NYSE:WMT)
Number of Hedge Fund Holders: 80
Walmart Inc. (NYSE:WMT), a prominent American retail giant headquartered in Bentonville, Arkansas, is widely recognized for its expansive network of hypermarkets, discount department stores, and strategically positioned grocery outlets across the United States. The company also operates several online marketplaces, including Walmart.com and Jet.com, which connect customers with a wide range of products, including groceries, electronics and clothing.
The company has maintained a remarkable track record of dividend increases for an impressive five decades, spanning 50 years. As of January 27, Walmart Inc. (NYSE:WMT) offers a quarterly dividend of $0.57 per share, resulting in a dividend yield of 1.39%.
In the third quarter of 2023, Walmart Inc. (NYSE:WMT) garnered significant attention from hedge funds, with 80 hedge funds establishing positions in the company, according to Insider Monkey’s database. The collective holdings of these hedge funds were valued at over $5.94 billion. Notably, Ken Fisher’s Fisher Asset Management emerged as the largest shareholder, boasting holdings valued at approximately $1.45 billion.
2. Alibaba Group Holding Ltd – ADR (NYSE:BABA)
Number of Hedge Fund Holders: 110
Alibaba Group Holding Ltd – ADR (NYSE:BABA) stands as a prominent entity in Chinese e-commerce, with Alibaba.com serving as one of the largest platforms in the industry. Beyond its core e-commerce business, Alibaba Group Holding Ltd – ADR (NYSE:BABA) has made substantial investments in diverse markets, including cloud computing, digital media, and entertainment. Alibaba Cloud, the company’s cloud computing division, ranks among the world’s largest and offers a comprehensive array of services encompassing infrastructure, security, and data analytics.
Baird analyst Colin Sebastian suggested in December that Alibaba Group Holding Ltd – ADR (NYSE:BABA) could be positioned to benefit in 2024 due to advancements in artificial intelligence (AI) and improved operating efficiencies. Despite this positive outlook, the analyst lowered the price target on the stock to $95. Sebastian highlighted several potential catalysts for the company, including factors such as e-commerce competition, corporate reorganization, shareholder returns, initiatives related to generative AI, and trends within Alicloud, Alibaba Group Holding Ltd – ADR (NYSE:BABA)’s cloud computing arm.
At the end of the third quarter of 2023, 110 hedge funds in the database of Insider Monkey held stakes worth $3.3 billion in Alibaba Group Holding Ltd – ADR (NYSE:BABA), compared to 112 in the preceding quarter worth $4.1 billion.
1. Amazon.com Inc (NASDAQ:AMZN)
Number of Hedge Fund Holders: 286
Amazon.com, Inc. (NASDAQ:AMZN), a prominent American multinational technology company, encompasses a diverse range of business interests, including e-commerce, cloud computing through Amazon Web Services (AWS), online advertising, digital streaming, and artificial intelligence. The company’s e-commerce platform is well-diversified, offering a wide range of products, including gourmet food, groceries, apparel, baby products, consumer electronics, beauty products, and more.
In the quarter ending in September, Amazon.com, Inc. (NASDAQ:AMZN) reported a 236% growth in EPS to $0.94. For its closely-watched Amazon Web Services Cloud business, the company recorded a 12% year-over-year sales increase to $23.1 billion, slightly below analysts’ expectations for sales of $23.2 billion. Amazon.com, Inc. (NASDAQ:AMZN) also stated that it anticipates sales to fall within the range of $160 billion and $167 billion for the current fourth quarter.
Based on data from Insider Monkey’s database, a total of 286 elite hedge funds held positions in Amazon.com, Inc. (NASDAQ:AMZN) stock, with a collective stake value of $38.8 billion. This represents an increase from the 278 hedge funds that collectively held a stake valued at $34.9 billion previously. Notably, Ken Fisher’s Fisher Asset Management emerged as the most significant stakeholder in the company, with 41.35 million shares valued at $5.25 billion.
You can also take a look at Jim Cramer is Recommending These 10 Stocks and 10 Best Tech Stocks for the Next 5 Years
