By Michael Dubois, Head of Corporate at VG Global Holdings   

One sector which has been growing in recent times is the relatively new industry of  e-commerce and, while general consumer behaviour has mostly stabilized in the post-pandemic era, e-commerce spending is expected by most analysts to keep growing. The companies which are innovating and scaling within this sector are likely to find themselves ahead of the rest of the field, and these two giants in the e-commerce world are my two picks for the long haul.     

Alibaba Group (BABA)    

Alibaba Group is basically charting a course toward a renewed prosperity after a recent little downturn in fortunes , with its latest earnings report indicating a powerful rebound. The company is thriving, and the company’s recent quarterly figures are a testament to this resurgence, with revenue climbing to RMB 234.2 billion, an impressive 14% increase year-on-year. This performance is spearheaded by its Taobao and TMall platforms, which experienced a 13% revenue boost due to a surge in consumer electronics sales and more streamlined marketing strategies, as well as its International Digital Commerce division, which made waves with a staggering 60% sales increase in the quarter. The company also recently unveiled the AI-powered Tongyi Qianwen, an innovation which promises to revolutionize customer experiences, voice assistance, and, most importantly, e-commerce efficiency, by refining user interaction.    

MercadoLibre (MELI)    

MercadoLibre is an Argentinian titan in e-commerce and fintech, and it is right now navigating a turbulent economic storm while its peers struggle to stay afloat. Its second quarter performance was impressive, comfortably beating market expectations with a GAAP earnings per share (EPS) of $5.16, while besting revenue forecasts by around $150 million with a revenue of a whopping $3.42 billion, which represents a 32% year-over-year increase from the previous year. It also boasts a solid $42.1 billion total payment volume, up a mighty 96.6% year-over-year, and a gross merchandise volume which increased by 47.2% year-over-year. Its profitability is reflected by the fact that its earnings have doubled from the previous year, and its fintech arm, Mercado Pago, boasted a massive 24% growth in U.S. dollars, with local currency revenue expanding by 48%. This company is showing a very rapid upward trend right now.    

The author does not own any stock, option or similar derivative position in any of the companies mentioned, and has no plans to initiate any such positions within the next 72 hours. This article only reflect the author’s own opinions. The author is not receiving compensation for it  and has no business relationship with any company whose stock is mentioned in this article.