5 stocks poised for a Cyber Monday bonanza
Online shoppers could spend some $1.8 billion Monday, and these companies will haul in the profits.
By Karen Riccio
Move over, Black Friday. Cyber Monday's coming to town.
With more consumers shopping online than ever before, cyber shoppers could deliver a revenue bonanza for key companies this Cyber Monday. For many, Black Friday's lines, crowds and confusion in the wee hours is losing its luster.
In fact, more people are expected to reach for their computer keyboards (or phones) on Cyber Monday than for their car keys on Friday, American Express projects.
Online shoppers are forecasted to spend $1.8 billion on Monday -- $62 billion throughout the holiday season -- and that means the online retail community at large will be sitting pretty with 22 shopping days still left until Christmas. I suspect with storms in the Northeast making in-person shopping less than pleasant, that figure could be bigger than anticipated.
For a handful of companies, the 15% increase in projected online spending on Cyber Monday -- though below last year’s 21% jump -- should deliver a virtual bow-tied bonanza of revenue. . . and deliver a boost in profits for investors. Here are five stocks to watch as Cyber Monday sales roar to new highs:
The obvious choices here would have been Amazon (AMZN) and eBay (EBAY), but for sheer quality customer service and ease of purchase, Overstock.com stands above the rest. In fact, it just won an award for having one of the best mobile websites and apps. Mobile is fast becoming a viable alternative for shoppers on the go. Overstock.com has an app for iOS devices (iPhones, iPods and iPads) as well as its Android version.
You name it, and the Salt Lake City, Utah, online discount retailer sells it -- from furniture, rugs, bedding, electronics, clothing, jewelry and cars to books (often 10% lower than Amazon's prices).
Despite its biggest revenue-producing days still ahead, Overstock's stock is up 85% year-to-date. That’s a gift in and of itself.
The global shipper expects Cyber Monday to be the busiest day in its history. Considering that history goes back 43 years, it certainly would be cause for celebration at FedEx headquarters in Memphis, Tenn. Seems like a win-win for all.
In anticipation of moving some 22 million shipments alone on Cyber Monday and a record-breaking 85 million packages for that entire week, FedEx is hiring tens of thousands of seasonal workers to handle the uptick.
It doesn’t take a math whiz to deduce that FedEx should grow right in step with e-commerce. What will the bulk of its holiday shipments include? Electronics, apparel and luxury goods. Here’s another stock that chugging right along in 2013, up 46% since January.
Wal-Mart Stores (WMT)
You can’t argue with success. Cyber Monday 2012 was Wal-Mart’s biggest sale day of the year, and Walmart.com CEO Joel Anderson has spent the better part of this year making sure this year will be even bigger.
I’m a believer, considering that even outside of holidays, $36 million is spent at Wal-Mart every hour of every day (its words, not mine).
One of the biggest selling points to shopping Wal-Mart online is free shipping on all purchases over $35. Of course you can find some of the best deals, from a Samsung 46-inch LED TV for $479 to an Xbox One for $559 and Apple iPod Touch for $199. Perhaps even bigger is its role as a distributor for Disney products and the infamous and very popular Doc McStuffins’ toys. Wal-Mart may not be able to go toe-to-toe with Amazon, but it still goes hand-in-hand with online holiday shopping. Shares of Wal-Mart have grown at a steady 16% in 2013.
Walt Disney (DIS)
In one corner of Cyber Monday we have Viacom’s (VIAB) Dora the Explorer doll, in the other is Disney’s Doc McStuffins, a 6-year-old aspiring physician. Disney's McStuffins is flying off the shelves -- and getting the clicks online -- as one of the hottest toys this season. The doll retails for about $10, and Disney is maximizing sales with spinoff items such as the $35 McStuffins doctor kit.
Along with the toy segment of Disney’s business, it can count on holiday sales from the non-shoppers opting for a visit to one of its amusement parks. Disney fans will also head to the new 3-D animated movie musical Frozen, which released the day before Thanksgiving. It's expected to generate $38 million in movie-ticket sales over the long Thanksgiving weekend.
Disney stock continues to entertain investors, up nearly 40% year-to-date.
You simply can’t discount Apple as one of the biggest players during the holidays and specifically on Cyber Monday. Apple's new iPad mini, a 7.9-inch tablet with Retina display and the new iPhone 5s and 5c are destined to be under many Christmas trees or stuffed in stockings.
Apple's iPhone is its largest moneymaker, at more than half of sales, and Apple projected that it will sell as many as 55 million iPhones in the fourth quarter. One analyst suggested that the iPad Air and new mini could "possibly be the most well-received recent devices from Apple" based on the 1 million tweets about them since they were unveiled back in October.
Last year the iPad accounted for more than 7% of traffic to e-retail sites, followed by the iPhone at 6.9%. The iPad accounted for 90.5% of traffic from tablets, beating out Android devices, Amazon Kindle, Samsung Galaxy and Barnes and Noble Nook.
You can expect Apple to retain leadership over the holidays and get a boost in stock value -- if the past decade means anything. AAPL has gone up an average of 5.8% during Thanksgiving week in the last 10 years.
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An obvious sign of an extremely frothy equities market... stocks to invest in based upon one day's revenue.
The bubble's pop is near.
And the most optimistic cheerleaders of the bunch will lose the most as they will fail to believe the correction whilst cuffed to their determination. Just like 7 years ago.
History is a terrible thing to ignore.
DID YOUR KID really need a new toy to break, mental distraction, brain-sucking tool? Wake up you IDIOTS... every penny the Dow is UP today indicates anti-Americanism. What goes around comes around and undoubtedly, as a Tsunami. You can't swim if you live dim and selfish. Get thinking... it's been a while, fools.
Spend spend spend. Money money money. Profit profit profit. Consume consume consume.
Since all this must deeply offend God, let's just go ahead and remove all reference to that pesky Christ fellow from 'Christmas' thing since the entire clusterf**ck has absolutely nothing to do with His birth anyway; wasn't even BORN on or anywhere around Dec. 25th. Ergo, let's call this time of year what it is, Moneymas, or 'Consumermas', and start a new holiday around...oh...say late Sept. when Christ was likely actually born anyway; call that date Christmas.
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The glory days are over for big-box retailers as consumers search for more convenience, say Goldman Sachs analysts.
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