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Nasdaq stocks are riding high


Dow Jones Nasdaq S&P 500 Covid-19 mercredi 21 octobre 2020

Nasdaq stocks are riding high

All over the country are looking forward to a day off on Thursday and a weekend shopping. It resulted in relatively quiet trading on Wall Street. The Nasdaq Composite recovered from recent losses with a modest gain of around 0.2 percent.

Many traditional retailers have been under much pressure this week. However, things have never looked better for some companies in the e-commerce world. In particular, shares of Etsy and Global-e Online were both up on Wednesday afternoon. Hence investors are hoping that what the two companies have done so far is just the start of a much longer growth surge. In more detail below, we’ll go over what’s causing these two stocks to move on the day before Thanksgiving.

Etsy

On Wednesday afternoon, Etsy’s stock was up nearly 7%. The craft and the homemade-goods market received positive feedback from a couple of Wall Street analysts, which boosted interest in its stock. Citi analysts were the first to weigh in, increasing their price target on Etsy by $75 to $320 per share. Citi reiterated its buy rating on the stock, saying that even as shoppers begin to change their behavior in response to continued progress in combating the pandemic, Etsy has been able to generate valuable brand awareness. Furthermore, Citi expects investors to reward Etsy with higher valuations as it demonstrates its ability to continue growing revenue.

Analysts have high hopes for e-commerce in general. With traditional retailers facing supply chain challenges, Etsy sellers’ more organic production should advantage the marketplace.

Global-e makes a deal

Shares of Global-e Online, on the other hand, were up an even more impressive 15%. The e-commerce firm made a strategic acquisition that has shareholders excited about the company’s future.

Global-e announced the acquisition of Flow Commerce, a provider of e-commerce software for cross-border transactions from emerging brand-name companies. The company believes that making the purchase will provide some small-business customers access to Global-e-services that they could not previously use. Significantly, the transaction may help Global-relationship e’s with Shopify, and Global-e has issued a warrant for a $70 million investment from Shopify at its discretion.

Global-e will pay $500 million in cash and stock for Flow. Performance-based warrants could result in an additional $45 million in potential stock compensation. The deal expects to close in the first quarter of 2022.

The post Nasdaq stocks are riding high appeared first on FinanceBrokerage.



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