Many e-commerce companies experienced massive growth spurts during the COVID-19 pandemic as more consumers shopped online. That acceleration, which coincided with the buying frenzy in growth stocks, propelled many e-commerce stocks to their all-time highs in 2020 and 2021.

But after pandemic pressures eased, those temporary tailwinds faded away and left those e-commerce darlings facing tough year-over-year comparisons. Inflation exacerbated that slowdown by curbing consumer spending while rising interest rates -- which were aimed at taming Inflation -- broadly drove investors away from higher-growth stocks.

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Source Fool.com