The end of the earnings season is always a good time to take a step back and see who shined (and who not so much). Let’s take a look at how online retail stocks fared in Q1, starting with Carvana (NYSE:CVNA).
Consumers ever rising demand for convenience, selection, and speed are secular engines underpinning ecommerce adoption. For years prior to Covid, ecommerce penetration as a percentage of overall retail would grow 1-2% annually, but in 2020 adoption accelerated by 5%, reaching 25%, as increased emphasis on convenience drove consumers to structurally buy more online. The surge in buying caused many online retailers to rapidly grow their logistics infrastructures, preparing them for further growth in the years ahead as consumer shopping habits continue to shift online.
The 5 online retail stocks we track reported a strong Q1. As a group, revenues beat analysts’ consensus estimates by 1% while next quarter’s revenue guidance was in line.
Luckily, online retail stocks have performed well with share prices up 24.1% on average since the latest earnings results.
Best Q1: Carvana (NYSE:CVNA)
Known for its glass tower car vending machines, Carvana (NYSE:CVNA) provides a convenient automotive shopping experience by offering an online platform for buying and selling used cars.
Carvana reported revenues of $4.23 billion, up 38.3% year on year. This print exceeded analysts’ expectations by 6.2%. Overall, it was an exceptional quarter for the company with a solid beat of analysts’ EBITDA estimates and impressive growth in its units.
Carvana scored the biggest analyst estimates beat and fastest revenue growth of the whole group. The company reported 133,898 units sold, up 45.7% year on year. The stock is up 33.4% since reporting and currently trades at $345.
Is now the time to buy Carvana? Access our full analysis of the earnings results here, it’s free.
Revolve (NYSE:RVLV)
Launched in 2003 by software engineers Michael Mente and Mike Karanikolas, Revolve (NASDAQ:RVLV) is a fashion retailer leveraging social media and a community of fashion influencers to drive its merchandising strategy.
Revolve reported revenues of $296.7 million, up 9.7% year on year, in line with analysts’ expectations. The business had a strong quarter with an impressive beat of analysts’ EBITDA estimates and a narrow beat of analysts’ number of active customers estimates.
The market seems happy with the results as the stock is up 15.3% since reporting. It currently trades at $21.84.
Is now the time to buy Revolve? Access our full analysis of the earnings results here, it’s free.
Slowest Q1: Wayfair (NYSE:W)
Founded in 2002 by Niraj Shah, Wayfair (NYSE:W) is a leading online retailer of mass-market home goods in the US, UK, Canada, and Germany.
Wayfair reported revenues of $2.73 billion, flat year on year, exceeding analysts’ expectations by 0.7%. Still, it was a mixed quarter as it posted a decline in its buyers.
Wayfair delivered the slowest revenue growth in the group. The company reported 21.1 million active buyers, down 5.4% year on year. Interestingly, the stock is up 44.7% since the results and currently trades at $43.71.
Read our full analysis of Wayfair’s results here.
Coupang (NYSE:CPNG)
Founded in 2010 by Harvard Business School student Bom Kim, Coupang (NYSE:CPNG) is an e-commerce giant often referred to as the "Amazon of South Korea".
Coupang reported revenues of $7.91 billion, up 11.2% year on year. This print came in 1.9% below analysts' expectations. Overall, it was a mixed quarter for the company.
Coupang had the weakest performance against analyst estimates among its peers. The company reported 23.6 million active buyers, up 8.8% year on year. The stock is up 18.1% since reporting and currently trades at $28.32.
Read our full, actionable report on Coupang here, it’s free.
Amazon (NASDAQ:AMZN)
Founded by Jeff Bezos after quitting his stock-picking job at D.E. Shaw, Amazon (NASDAQ:AMZN) is the world’s largest online retailer and provider of cloud computing services.
Amazon reported revenues of $155.7 billion, up 8.6% year on year. This number met analysts’ expectations. Zooming out, it was a mixed quarter as it also produced a solid beat of analysts’ EPS estimates but operating income guidance for next quarter missing analysts’ expectations.
The stock is up 9.1% since reporting and currently trades at $207.10.
Read our full, actionable report on Amazon here, it’s free.
Market Update
Thanks to the Fed’s rate hikes in 2022 and 2023, inflation has been on a steady path downward, easing back toward that 2% sweet spot. Fortunately (miraculously to some), all this tightening didn’t send the economy tumbling into a recession, so here we are, cautiously celebrating a soft landing. The cherry on top? Recent rate cuts (half a point in September 2024, a quarter in November) have propped up markets, especially after Trump’s November win lit a fire under major indices and sent them to all-time highs. However, there’s still plenty to ponder — tariffs, corporate tax cuts, and what 2025 might hold for the economy.
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