2 Ecommerce Actions To Avoid As Black Friday Online Sales Dip By StockNews
© Reuters. 2 Ecommerce Actions To Avoid As Black Friday Online Sales Slump
Black Friday saw a drop in online sales for the first time in years. And ecommerce stocks could struggle next year, with analysts more pessimistic about the outlook for consumer spending. Therefore, we believe investors would be better off avoiding Amazon (AMZN) and eBay (EBAY) ecommerce stocks. The reason is that retailers had started offering deals earlier in October, and strategic buyers seized these opportunities for the best deals. Additionally, the threat of supply chain disruptions and delivery delays has prompted shopaholics to take advantage of early discounts.
Although retailers experienced a rough patch last year due to the pandemic, declining consumer spending, and supply chain bottlenecks, they have rebuilt themselves and generated better revenues this past year. year due to increased store traffic and online sales. However, given that the first great deals offered by retailers changed shopping habits and led to a drop in Black Friday online sales, it would be wise to avoid fundamentally low retail stocks.
We believe Amazon.com, Inc. (NASDAQ 🙂 and eBay Inc. (NASDAQ 🙂 e-commerce stocks should be avoided now.
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