Back to top

Image: Bigstock

BIGC or FVRR: Which E-Commerce Stock Will Post Better Q4 Earnings?

Read MoreHide Full Article

E-commerce companies are expected to have continued to gain from the spurt in online shopping during fourth-quarter 2020 in the wake of social distancing due to the coronavirus pandemic.

Moreover, a spike in online shopping orders during the holiday season is anticipated to have hugely benefited these companies.

The coronavirus-led social-distancing protocol and shelter-at-place restrictions, which have boosted the demand for door-to-door delivery of essential and other items, are expected to have driven the customer momentum of online retail companies.

Moreover, the growing proliferation of Internet usage and ultrafast delivery services globally are anticipated to get reflected in the results of e-commerce companies for the quarter under review.

Additionally, increasing online orders for groceries, medicines and other essential items, as people refrain from stepping outside their homes on fears of contracting the deadly virus, are expected to have driven the top line of online retail companies.

Amazon’s (AMZN - Free Report) stellar fourth-quarter 2020 performance testifies the above-mentioned facts. The company’s online store sales rose46% from the prior-year quarter. Notably, it sold more than a billion products under various product categories across the world during the holiday shopping period.

Further, eBay (EBAY - Free Report) reported robust fourth-quarter results on the back of its solid Marketplace growth and accelerating gross merchandise volume.

Other Factors to Note

Smart technologies like AI, AR/VR, ML and deep learning, which aid e-commerce companies in offering a personalized user experience to customers, are expected to have positively impacted the performances of the companies this earnings season.

The growing adoption of m-commerce, online payment services and mobile apps is anticipated to have contributed to the performances of e-commerce companies in the quarter under review.

However, accelerating coronavirus-related expenses being incurred by the companies to bolster their distribution strength to meet the rising customer demand are expected to have been concerning.

E-commerce Stocks to Watch

Let's take a look at two e-commerce companies, which are scheduled to report fourth-quarter 2020 earnings on Feb 18, and find out how things have shaped up prior to the announcements.

BigCommerce Holdings, Inc. (BIGC - Free Report) is expected to have benefited from the growing momentum across its open SaaS platform in the fourth quarter. The launch of an open-source checkout platform namely Open Checkout is expected to have helped the company in gaining traction across merchants, developers and partners. Further, increasing traction across B2C and B2B merchants is expected to have driven growth in its enterprise business in the soon-to-be-reported quarter.

Additionally, the impacts of BigCommerce’s expanding product offerings and go-to-market capabilities worldwide are expected to get reflected in the fourth-quarter results of its international business. Also, the company’s record-breaking sales between Thanksgiving and Cyber Monday are anticipated to have significantly driven top-line growth.

However, mounting marketing expenses are expected to have remained concerning for the company in the quarter under review. (Read more: BigCommerce to Post Q4 Earnings: What's in the Cards?)

The Zacks Consensus Estimate for fourth-quarter loss is pegged at 15 cents per share, which has been unchanged over the past 30 days.

Our proven model doesn’t conclusively predict an earnings beat for BigCommerce this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the chances of an earnings beat.You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

Notably, BigCommerce has an Earnings ESP of 0.00% and a Zacks Rank #3.

BigCommerce Holdings, Inc. Price and EPS Surprise

 

BigCommerce Holdings, Inc. Price and EPS Surprise

BigCommerce Holdings, Inc. price-eps-surprise | BigCommerce Holdings, Inc. Quote

Fiverr International Ltd. (FVRR - Free Report) is anticipated to have benefited from its strong focus on product and technology enhancements in the fourth quarter.

Also, the company’s marketing efficiency, courtesy of positive trends in both organic and paid channels, is expected to have contributed to the performance in the quarter to be reported.

Moreover, solid momentum in performance marketing is expected to have aided the company in acquiring new buyers in the to-be-reported quarter. Additionally, its focus on international expansion is anticipated to have acted as a tailwind in the fourth quarter.

Furthermore, the company’s accelerated Artificial Intelligence efforts through personalization and customer support are expected to have driven its fourth-quarter performance. (Read more: Fiverr to Report Q4 Earnings: What's in the Cards?)

The Zacks Consensus Estimate for fourth-quarter earnings has been unchanged at 12 cents per share over the past 30 days.

Notably, Fiverr has an Earnings ESP of 0.00% and a Zacks Rank #3 at present. You can see the complete list of today’s Zacks #1 Rank stocks here.

Fiverr International Lt. Price and EPS Surprise

 

Fiverr International Lt. Price and EPS Surprise

Fiverr International Lt. price-eps-surprise | Fiverr International Lt. Quote

Legal Marijuana: An Investor’s Dream

Imagine getting in early on a young industry primed to skyrocket from $17.7 billion in 2019 to an expected $73.6 billion by 2027.

Although marijuana stocks did better as the pandemic took hold than the market as a whole, they’ve been pushed down. This is exactly the right time to get in on selected strong companies at a fraction of their value before COVID struck. Zacks’ Special Report, Marijuana Moneymakers, reveals 10 exciting tickers for urgent consideration.

Download Marijuana Moneymakers FREE >>