Amazon (NASDAQ: AMZN) and Etsy (NASDAQ: ETSY) both soared during the earlier stages of the pandemic. Amazon won as shoppers flocked to its e-commerce platform for essentials. And Etsy won as consumers shopped online for face masks and other handmade items. But these companies' successes aren't just linked to the health crisis. Both already were growing revenue well before the pandemic. And there are plenty of reasons why that should continue well into the future.
At the same time, both stocks have suffered along with the general indexes this year. Amazon has dropped about 38%, while Etsy has lost 68%. Which stock is a better buy considering valuation and future prospects? Let's find out.
Rising inflation is weighing on Amazon right now. But here's the good news. This is an external problem and it's temporary. So once the situation improves, the e-commerce business should benefit. Meanwhile, Amazon is working on managing the costs that are within its control. That's about two-thirds of incremental costs, the company said during its first quarter earnings report. Amazon also made a big investment recently. It doubled its fulfillment network in just two years. This is costly in the near term. But over the long term, the move is likely to pay off.
Source Fool.com