On Friday, CNBC’s Jim Cramer provided investors with a list of e-commerce strategies he thinks are worth buying despite the group’s dismal performance in 2022.
“There are still some e-commerce strategies that really prioritize profitability,” he said.
Here is his list:
- Mercado Libre
E-commerce stocks surged at the height of the Covid pandemic as home consumers made purchases online rather than in stores. But as the economy reopened, consumers prioritized spending on travel and experiences over products.
The change, along with the Federal Reserve’s interest rate hikes, sent e-commerce stocks plummeting from last year’s highs.
Cramer believes the group’s struggles are temporary, but cautioned that it’s too early to buy many names in the e-commerce space. Amazon.
One of the company’s biggest concerns is the need to further reduce costs. Amazon announced earlier this month plans to lay off more than 18,000 employees.
While that may seem like a significant cut, “This is a company with well over a million employees. For them, this is a bucket drop,” Cramer said.
But Amazon’s stock price will eventually bottom out, he said. “I think the business can finally make a big comeback and there will come a point where stocks are screaming buys.”
Disclaimer: Cramer’s Charitable Trust owns shares of Amazon.