Q3 2020 Earnings analysis: Which eCommerce Stock should I buy and at what price?

If you are following eCommerce companies (not Retail Commerce such as Home Depot, Walmart, etc.) there are 11 publicly listed companies that I am following. Of those 8 have reported earnings as of Nov 12th. JD.com reports on Nov 16th, SEA limited reports on Nov 17th and Chewy on Dec 14th.

Click for larger view of EPS, Revenue, Estimates, Market Cap and Growth

Q3 2020 Earnings estimates and analysis

Companies tracked (ranked by market capitalization)

CompanyTicker
AmazonAMZN
AlibabaBABA
JD.COMJD
PinduoduoPDD
ShopifySHOP
SEA LimitedSE
Mercado LibreMELI
ChewyCHWY
WayfairW
Etsy Inc.ETSY
FarfetchFTCH
Jumia TechnologiesJMIA
Top eCommerce publicly traded companies

The top 5 takeaways from Q3 2020 earnings that I gathered

5 Top E-Commerce Stocks to Buy in July | The Motley Fool

Covid has accelerated all eCommerce companies, but some are gaining more share than others.

Revenue growth for ETSY has been the highest so far at 128%, followed by Shopify at 96%. Alibaba has been growing slower, but that’s to be expected because of their large revenue base.

Earnings are growing faster for all

Surprisingly, except 2 companies (Chewy and Wayfair) all others turned a profit and the fastest earnings growth was seen from Pinduoduo (PDD) Etsy (ETSY) and Shopify (SHOP).

Valuations are deservedly rich thanks to EPS and Revenue Growth

The companies with the richest valuations are Pinduoduo (PDD), Mercado Libre (MELI) and Shopify (SHOP). ETSY is relatively cheap at 76 PE.

Stocks I would be adding to my portfolio are ETSY and consider JMIA / FTCH

ETSY’s valuation and growth are terrific. I am going to hold MELI and SHOP, but add to my ETSY holding. I would also keep Jumia (JMIA) and Farfetch (FTCH) in my watch list.

Stocks I would likely not add are Alibaba, Wayfair and Chewy

I think they are good companies, but have limited upside for a 6-12 month horizon given their growth relative to other eCommerce companies.