These 2 Stocks Just Got a Post-Thanksgiving Lift – The Motley Fool

Date:

- Advertisement -

Founded in 1993 by brothers Tom and David Gardner, The Motley Fool helps millions of people attain financial freedom through our website, podcasts, books, newspaper column, radio show, and premium investing services.
Founded in 1993 by brothers Tom and David Gardner, The Motley Fool helps millions of people attain financial freedom through our website, podcasts, books, newspaper column, radio show, and premium investing services.
Motley Fool Issues Rare “All In” Buy Alert
You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More
Thanksgiving weekend is over, and investors are back to work in earnest. Overall, markets looked poised on Monday morning to give back some of their recent gains, with many commentators attributing declines of around 0.5% to 0.75% in stock index futures to concerns about Chinese protests over the government’s ongoing zero-COVID policy.
Many investors were pleased with how the holiday shopping season kicked off over Thanksgiving weekend, though, and that helped contribute to solid gains in a pair of stocks. Shopify (SHOP 3.48%) and Pinduoduo (PDD 14.01%) serve different parts of the world, but both gave some information about business conditions that shareholders liked seeing. Read on for the details.
Shares of Shopify rose nearly 6% in premarket trading on Monday. The stock reacted positively to news that the online e-commerce platform provider released about how well its merchants did to start out the holiday shopping season.
Shopify announced a new record for shopping volume on Black Friday, with its merchants recording $3.36 billion from the beginning of the day in its easternmost time zone of New Zealand to the end of the day on the U.S. West Coast. The figure was up 17% from 2021’s Black Friday performance, even including a 2-percentage-point negative impact on sales from currency impacts. The day’s volume peaked shortly after noon ET on Friday, with sales of $3.5 million per minute recorded on the platform.
Shopify also provided some interesting information on where sales were strongest. Geographically, the U.S., U.K., and Canada had the most shoppers, with London, New York, and Los Angeles predictably heading the list of top cities. From a product perspective, Shopify saw the most activity in apparel and accessories, health and beauty, and home and garden. Average cart prices topped the $100 mark, with 15% of total orders representing cross-border activity.
Shareholders have had some concerns lately that Shopify could be exposed to slower economic growth worldwide. Based on Black Friday’s results, however, Shopify seems to be holding up better than some had expected, and that could bode well for the stock over the long haul.
On the other side of the globe, shares of Pinduoduo jumped nearly 15% in premarket trading on Monday. Even with worries about China weighing on the broader market, the e-commerce specialist continued to show strong growth in its third-quarter financial report, reassuring investors who had been nervous about its prospects.
Pinduoduo’s business numbers were impressive. Revenue jumped 65% year over year to $4.99 billion, with the company attributing the gains to rising sales from online marketing and transaction services that offset weakness in merchandise sales. Higher fulfillment and payment processing fees caused overall expenses to rise, but adjusted net income nearly quadrupled to $1.75 billion, or $1.21 per American depositary share.
Growth in the business came despite some challenges that Pinduoduo has faced recently. Executives cited the need to continue to boost investment in research and development (R&D), as business conditions affected some of the company’s projects during the quarter. Pinduoduo hopes that its R&D spending will enable it to make supply chains even more efficient while bringing a larger number of potential clients into the digital economy.
U.S. investors have looked forward to long-term plans for Pinduoduo to expand across the Pacific. That might take a while, but based on its performance closer to home, Pinduoduo looks to have solid prospects to keep growing its global footprint in the years to come.
Dan Caplinger has positions in Shopify. The Motley Fool has positions in and recommends Shopify. The Motley Fool recommends the following options: long January 2023 $1,140 calls on Shopify and short January 2023 $1,160 calls on Shopify. The Motley Fool has a disclosure policy.
*Average returns of all recommendations since inception. Cost basis and return based on previous market day close.
Market-beating stocks from our award-winning analyst team.
Calculated by average return of all stock recommendations since inception of the Stock Advisor service in February of 2002. Returns as of 11/28/2022.
Discounted offers are only available to new members. Stock Advisor list price is $199 per year.
Calculated by Time-Weighted Return since 2002. Volatility profiles based on trailing-three-year calculations of the standard deviation of service investment returns.
Invest better with The Motley Fool. Get stock recommendations, portfolio guidance, and more from The Motley Fool’s premium services.
Making the world smarter, happier, and richer.

Market data powered by Xignite.

source

- Advertisement -

LEAVE A REPLY

Please enter your comment!
Please enter your name here

Share post:

Subscribe

ADVERTISEMENT

Popular

More like this
Related

Ghana, creditor panel agree on debt restructuring, paving way for IMF cash

Ghana has finalised a pact with its official creditor...

Nigeria strikes deal with Shell to supply $3.8 billion methanol project

Nigeria has struck a deal for Shell (SHEL.L), opens new...

Africa’s $824 billion debt burden and opaque resource-backed loans hinder its potential, AfDB president warns

Africa's immense economic potential is being undermined by non-transparent...

IMF: South Africa needs decisive efforts to cut spending

South Africa needs more decisive efforts to cut spending...