Profit Pregame

Cyber Monday Sales Shot Up 15% But This is The Only “Reatil” Stock I’m Investing In

The Cyber Monday numbers are in…

The holiday shopping season is looking merry and bright.

What’s happening?

Black Friday and Cyber Monday have now come and gone. These two dates are typically highly anticipated, kicking off the year’s holiday shopping season – but retail isn’t typical this year, so many wondered what they could expect from these celebrated shopping holidays. But the Cyber Monday numbers was something no one anticipated…

Consumers flooded online sales on Monday, pushing spending up a shocking 15.1%, year over year. But the spending didn’t just rise; it exploded, shattering records while it was it. When you take a closer look at the numbers, you’ll see that on Monday alone, consumers spent a shocking $10.8 billion – setting a new record for the largest U.S. online shopping day ever.

Many companies celebrated the good fortune – but for one company, they’ve been breaking records far before the Cyber Monday deals hit the scene.

Here’s what I mean…

Where’s the money?

Amazon said that this year’s holiday shopping season had been the biggest in its history, as the coronavirus pandemic forced more people than ever to do their shopping online. The company noted that customers have been shopping early, far earlier than Cyber Monday, as Amazon has been rolling out deals since mid-October.

The company said that independent businesses selling on Amazon – nearly all of which are small and medium-sized businesses – saw worldwide sales growing by more than 60% year-over-year to $4.8 billion between Black Friday and Cyber Monday. This was good news for the economy, seeing that the pandemic has severely impacted small and medium-sized businesses.

And truthfully, we’re just at the beginning of the holiday shopping rush – so, here’s how you can set yourself up for profiting off the month to come…

How do I get some?

I’m sure it’s not surprising to you that Amazon has had such a successful launch into the holidays – especially as lockdowns are becoming more and more severe across the U.S. But what you might find surprising is that despite the success the company has been seeing, it’s one of the FAANG names that has been facing selling pressure.

In reality, FAANG names have been underperforming in this market. And that should be a red flag to all investors seeing that the market is hitting all-time highs with AMZN looking weak. And I believe we will continue to see this trend.

So, with that said, in the short-term, I think Amazon could sell off to the $2800 level – a fantastic bargain for such a robust stock. And we could see it rise over the next 2-3 years trading higher. That’s why I’d look to buy this FAANG contender at the $2800 level and ride this short-term weakness straight to profit in the years to come.

In the Spotlight: Another major retail name falls…

Another major retailer has buckled to the weight of the pandemic. And this time, it’s U.K. retailer Arcadia who is delivering the unfortunate news. Arcadia is currently seeking protection from creditors as it hurries to save 13,000 jobs and brands such as Topshop after sales collapsed over the last six months.

Topshop isn’t the only store Arcadia has on its roster either, owning Miss Selfridge and Dorothy Perkins. But just this week, the company has entered administration, which is much like Chapter 11 bankruptcy protection in the U.S. The CEO explained…

“This is an incredibly sad day for all of our colleagues as well as our suppliers and our many other stakeholders. The impact of the Covid-19 pandemic, including the forced closure of our stores for prolonged periods, has severely impacted on trading across all of our brands.”

Retail has continued to struggle as the pandemic’s grip on the economy continues to tighten – so, this isn’t the first nor the last bankruptcy we will most likely see in the sector. And that’s precisely why I haven’t been chasing most news regarding retail names. But with that said, I’ll be sure to keep you updated as the sector continues to evolve.

As One Company Falls…

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