73% of consumers admit to having made some travel -related purchase online , such as plane tickets, hotels, or bus tickets, in the last 12 months. And the average travel expenditure reached €715 in 2018, according to the Cetelem report “M-commerce: The Evolution of the Online Store 2018.” This same study also indicates that the top three sectors are rounded out by leisure (74%), with online purchases of books, tickets, music, and restaurants, and fashion (66%).
Regarding purchasing methods, mobile phones are gaining ground. 63% of Spaniards surveyed by Cetelem stated that they make purchases via smartphones. In 2014, this figure was 25%, a decrease of 38 percentage points. This mobile trend is also evident in purchases made through apps . According to the study "A Snapshot of Transactional App Users" conducted by Webloyalty and IPSOS, 7 out of 10 users acknowledge using apps not only to search for information but also to make purchases through this channel.
But how does this trend affect consumer spending in equity markets? Well, indirectly, because e-commerce isn't currently traded on stock exchanges, at least not on domestic stock exchanges. If you want to trade these types of products, you'll have no choice but to go to the US stock exchanges where these securities are listed. This sector has appreciated by 24% this year, making it one of the most bullish sectors on Wall Street.
eCommerce is listed on the Dow Jones
E-commerce is one of the emerging sectors in the US stock market. It has been experiencing a clear upward trend, leading to price increases over the past few years. These stocks have gradually been included in the world's largest trading index. This sector comprises a range of stocks characterized by high volatility , with significant price swings between their highest and lowest points. Price fluctuations can reach up to 7% in some trading sessions.
Another common denominator of these unique stocks is their cyclical nature. That is, they perform best during periods of economic expansion. Conversely, they exhibit a more bearish phase during recessions , as has been evident in recent years. This is one of the main reasons why the risk involved in trading them is higher than in other international equities. Greater caution is needed when opening positions, as significant losses are possible. However, for the same reason, they also experience spectacular appreciation, and in this respect, they are somewhat similar to technology stocks.
Most representative values of the sector
The list of publicly traded e-commerce companies may not be particularly flashy at the moment, but it is certainly spectacular. These companies trade thousands upon thousands of shares, boasting some of the highest trading volumes currently available. Three stocks stand out as prime examples of this investment trend, particularly favored by small and medium-sized investors: Alibaba, Amazon, and eBay . These stocks are frequently featured in specialized media outlets due to the high level of interest they generate among financial intermediaries, surpassing even traditional or conventional stocks.
The Chinese e-commerce giant Alibaba operates business-to-business and retail portals, as well as websites specializing in price comparisons. With revenues exceeding $200.000 billion in recent years due to the widespread penetration of its business lines, its stock prices frequently appreciate by more than 20% in equity markets —a truly unusual occurrence for other stocks. From this perspective, it is a very aggressive stock targeted at a well-defined user profile.
Amazon leader in buying on the stock exchange
It's another of the bets offered by the e-commerce sector since it began trading on the American stock exchange 20 years ago. Its market valuation has increased significantly in recent years, to the point that today the shares are worth 60.000% more than on its initial public offering. This means that small and medium-sized investors who took positions in this stock at the beginning could now be among the very wealthy. However, the question some retail investors are asking is whether its shares could depreciate as sharply as they did during the initial surge.
Another publicly traded company with similar characteristics is eBay , an online auction site that has seen significant appreciation since its initial listing on the American stock exchanges. It has been one of the year's star performers, rising by around 60%. It is one of the most bullish stocks available and is a staple in the investment portfolios of the most aggressive investors because very high returns can be achieved in just a few days, to the point that its margins exceed traditional percentages.
In any case, it should be noted that the electronic commerce sector is not present on the Spanish stock market. If not, on the contrary, there will be no other solution than to leave our borders to buy and sell their shares. With more expansive commissions that even triple the rates in the national markets. Being one of the weakest points that characterize these financial markets. Although the question that some retailers are asking is whether their shares could depreciate with the same intensity as in the rises.