As mentioned in this article the business wave of selling ideas, products and services via internet, mobile apps or QR code is developing at an amazing rate. Globalization and network effects make online purchasing easier, cheaper and faster for international businesses. The Amplify Online Retail ETF (IBUY) is a portfolio of companies generating significant revenue from online and virtual sales. Online retail stocks, as a specific segment in internet stocks, caught our attention! This article features 4 such online retail stocks that look bullish in 2018.
As far as the IBUY chart is concerned, price remains in a primary uptrend.
Weekly chart of iBUY ETF
At InvestingHaven we screen top stocks in ETFs, and, as far as IBUY is concerned, we have found 4 internet stocks with potentially significant upside. Forget Black Friday and other specialty cases, we are focused on long term value plays.
4 online retail stocks with bullish potential in 2018
Online retail stock #1 – 1-800 Flowers.com, Inc – (Nasdaq: FLWS)
1-800-Flowers.com, Inc. is a floral and gourmet foods gift retailer and distribution company in the United States. It was one of the first retailers to use a 24 x 7 toll-free telephone number, then the Internet, and then conversational commerce via chat/chatbots for direct sales to consumers.
Weekly chart of FLWS
This florist shop survived both the 2000 dotcom crash as well as the 2008 global financial crisis. The 19 year long recovery sees price revisiting the 13 dollar zone even if it got rejected 4 times. And this has morphed into a massive inverted head and shoulder pattern which is generally bullish from a chart viewpoint IF price breaks out convincingly.
The next immediate upside target is ~17.8 which if successfully surpassed, will see price approaching the 23 level. Although we have an ultimate price target in the 50-65 area, we should first see how price behaves at 17.8 and 23 before updating new price structure. In case this scenario fails then 11.30 is the immediate support, followed by ~8.15.
Online retail stock #2 – Groupon (Nasdaq: GRPN)
Groupon, Inc. operates online local commerce marketplaces around the world that connects merchants to consumers by offering goods and services at a discount. Consumers access marketplaces through its Websites, primarily localized groupon.com sites in various countries, and its mobile applications. It offers on discount deal that ranges from events and activities, beauty and spa, health and fitness, food and drink, home and garden, and automotive. The Company also offers deals on concerts, sports, theater and other live entertainment events through GrouponLive.
It was an initial success within 6 months but faded very fast to the point where it become oblivious.
Weekly chart of GRPN
The weekly chart of Groupon has illustrated an all-time important support of ~2.7 that we believe could mean the potential of becoming a sub-penny stock. The consolidation since the bottom in 2012 has taken about 5 years morphing into a descending triangle. The bullish scenario takes place if price breaks above the blue downtrend line to stand a chance to test resistance of around 5.7 before challenging 8.4. The neutral case: price continues to go sideways (even longer than we would expect).
Online retail stock #3 – MakeMyTrip.com (Nasdaq: MMYT)
MakeMyTrip is an Indian online travel company founded in 2000. Headquartered in Gurugram, Haryana, the company provides online travel services including flight tickets, domestic and international holiday packages, hotel reservations, rail and bus tickets, etc. The company also operates through 51 retail stores across 47 cities in India, along with offices in New York City. MakeMyTrip is one of the leading online travel agency in India.
Weekly chart of MMYT
To sum up, the entire price structure is a Huge W pattern consolidation that took about 8 years to complete. Price is just inches away from the 39 zone. Going forward the neutral to bearish case would be a failed W: price would break ~27.95 followed by 22.45. The long term bullish case: price would temporary dip to 31.5 (next few weeks) before charging to 41. Should it break out the next target would be ~57 followed by ~73.
Online retail stock #4 – JD.com (Nasdaq: JD)
JD.com, Inc, also known as Jingdong and formerly called 360buy, is a Chinese e-commerce company headquartered in Beijing. It is one of the two largest B2C online retailers in China by transaction volume and revenue, a member of the Fortune Global 500 and a major competitor to Alibaba-run Tmall. As of September 2017, the platform has 266.3 million active users. JD.com is the world’s leading company in high tech and AI delivery through drones, autonomous technology and robots, and possesses the largest drone delivery system, infrastructure and capability in the world. It has recently started testing robotic delivery services and building drone delivery airports, as well as operating driverless delivery by unveiling its first autonomous truck
Weekly chart of JD
Although JD.com commenced trading in May 2014, the sales, revenue and stock price has carried some weight amongst its fiercest competitor. Price of JD consolidated between 20 – 37 for good three years before the important breakout. Subsequently it retraced and re-tested the ~36 support zone. As of late the price is engaged in a narrower bull flag consolidation pattern. If price can breach above 50.55 the next potential upside target of ~61 is highly possible followed by ~72. For the neutral or short term downside, a retest of 40.5 is possible followed by ~35.85
A reminder to investors: technology based stocks are highlight volatile, readers are encouraged to perform due diligence before getting in because this is not a buy or sell recommendation.