Better E-Commerce Buy: Amazon vs. Etsy
Earlier in the pandemic, e-commerce stocks won as people opted to stay home and shop rather than go to stores -- and in many cases the stores weren't even open. But as routines returned and stores opened their doors, e-commerce companies no longer were the only game in town. That and rising inflation weighed on the sector last year. And as a result, earnings of some of the biggest players suffered.
The good news, though, is the general economic environment is improving, and top e-commerce companies are recovering. Two to watch are Amazon (NASDAQ: AMZN), a seller of essentials and general merchandise, and (NASDAQ: ETSY), a platform for the selling and buying of handmade items. Both of these stocks are promising -- but which makes the better buy right now? Let's find out.
Amazon last year reported its first annual loss in almost 10 years. Higher inflation weighed on its costs and on consumers' ability to spend. At the same time, Amazon struggled with excess fulfillment capacity. The company had doubled its network in a short period of time as the pandemic fueled demand. As a result, Amazon's shares also suffered, falling almost 50%.
Source Fool.com
