Q1 Online Retail Earnings Review: First Prize Goes to Amazon (NASDAQ:AMZN)
The end of the earnings season is always a good time to take a step back and see who shined (and who not so much). Let’s take a look at how online retail stocks fared in Q1, starting with Amazon (NASDAQ:AMZN). Consumers ever rising demand for convenience, selection, and speed are secular engines underpinning ecommerce adoption. For years prior to Covid, ecommerce penetration as a percentage of overall retail would grow 1-2% annually, but in 2020 adoption accelerated by 5%, reaching 25%, as increased emphasis on convenience drove consumers to structurally buy more online. The surge in buying caused many online retailers to rapidly grow their logistics infrastructures, preparing them for further growth in the years ahead as consumer shopping habits continue to shift online. The 5 online retail stocks we track reported a very strong Q1. As a group, revenues beat analysts’ consensus estimates by 2.7% while next quarter’s revenue guidance was in line. Amidst this news, share prices of the companies have had a rough stretch. On average, they are down 15.8% since the latest earnings results. Best Q1: Amazon (NASDAQ:AMZN) Founded by Jeff Bezos after quitting his stock-picking job at D.E. Shaw, Amazon (NASDAQ:AMZN) is the world’s largest online retailer and provider of cloud computing services. Amazon reported revenues of $181.5 billion, up 16.6% year on year. This print exceeded analysts’ expectations by 2.4%. Overall, it was a stunning quarter for the company with an impressive beat of analysts’ EPS estimates and revenue guidance for next quarter exceeding analysts’ expectations. “We’re making customers’ lives easier and better every day across all our businesses, and their response is driving significant growth,” said Andy Jassy, President and CEO, Amazon. The market was likely pricing in the results, and the stock is flat since reporting. It currently trades at $262.61. Carvana (NYSE:CVNA) Known for its glass tower car vending machines, Carvana (NYSE:CVNA) provides a convenient automotive shopping experience by offering an online platform for buying and selling used cars. Carvana reported revenues of $6.43 billion, up 52% year on year, outperforming analysts’ expectations by 6%. The business had a very strong quarter with a solid beat of analysts’ revenue estimates and an impressive beat of analysts’ EBITDA estimates. Carvana pulled off the biggest analyst estimates beat and fastest revenue growth among its peers. Although it had a fine quarter compared its peers, the market seems unhappy with the results as the stock is down 15.5% since reporting. It currently trades at $67.05.