Why Stitch Fix, Sea Limited, and MercadoLibre Were Pulling Back Today
Shares of high-flying e-commerce stocks including Stitch Fix (NASDAQ: SFIX), Sea Limited (NYSE: SE), and MercadoLibre (NASDAQ: MELI) were falling today on a broader sell-off in tech stocks. There was no major news out on any of these companies but they were likely falling in sympathy with Shopify (NYSE: SHOP), the e-commerce software company, which reported strong fourth-quarter earnings this morning but also warned that revenue growth would slow in 2021 as vaccines roll out, foreshadowing a slowdown across the e-commerce sector.
Also this morning, it was reported that retail sales jumped 5.3% in January from December, or 7.4% on a year-over-year basis, showing the impact of the $600 stimulus checks sent out at the end of December. While that report shows that the U.S. consumer is strong, it could also cool off demand for another large stimulus package. Similarly, bond yields are likely to rise as the economy recovers, which will cause some rotation out of high-growth stocks back into fixed income.
As of 12:43 p.m. EST, Stitch Fix was down 8.3%, Sea Limited had fallen 4.1%, and MercadoLibre shares were off 3.6%.
Source Fool.com
