2 E-Commerce IPOs That Doubled in 2021

The e-commerce industry has gained a lot of momentum due to the pandemic that shuttered brick-and-mortar stores. During the height of the pandemic in 2020, e-commerce as a share of total retail sales in the United States and China multiplied by 3.3 times and 1.6 times, respectively.

The momentum seems to have not dampened in 2021. The share of e-commerce of total retail sales in the third quarter in the United States surged 11.3% from pre-pandemic levels. Moreover, the industry is anticipated to hold onto its pandemic-fueled heightened sales due to consumers’ sticky behavior toward hybrid shopping patterns. The global e-commerce sales are expected to grow 16.8% to $4.92 trillion in 2021 and are estimated to grow a further 12.7% in 2022.

The industry tailwinds should bode well for the newly listed e-commerce stocks Global-e Online Ltd. (GLBE) and Jowell Global Ltd. (JWEL). These stocks have doubled since they went public this year.

Global-e Online Ltd. (GLBE)

GLBE operates as a platform provider to enable and accelerate direct-to-consumer cross-border e-commerce. The company, headquartered in Petah Tikva, Israel, went public after an initial public offering (IPO) of its ordinary shares at $25 per share on May 12, 2021.

On November 24, GLBE announced it has entered into a definitive agreement to acquire a technology-based cross-border e-commerce software solution for emerging brands, Flow Commerce Inc. The acquisition should enhance the company’s portfolio and operational capabilities.

Earlier in November, GLBE declared a collaboration with Australia Post to help small merchants accelerate their direct-to-consumer online sales. The collaboration is expected to facilitate the company’s expansion into the Australian market.

For the fiscal third quarter ended September 30, GLBE’s revenue increased 77.4% year-over-year to $59.12 million. Gross profit improved 126.8% from the prior-year quarter to $22.81 million. Cash, cash equivalent, and restricted cash balance came in at $395.76 million, up 462.7% from the same period last year.

The consensus EPS estimate of $0.16 for the next year (fiscal 2022) indicates a 45.5% year-over-year increase. Likewise, the consensus revenue estimate for the upcoming year of $367.06 million reflects a rise of 52.8% from the current year.

The stock has gained 141.8% since it went public on May 12 to close yesterday’s trading session at $61.67. It has gained 3% over the past five days.

Jowell Global Ltd. (JWEL)

JWEL is an online retailer of cosmetics, health, and nutritional supplements in China. Based in Shanghai, China, the company sells its products through retail stores under the Love Home brand name.

The company went public in a traditional IPO process on March 17, 2021, on the Nasdaq Capital Market. The underwritten IPO of 3,714,286 ordinary shares at $7.00 per share generated total gross proceeds of $26 million.

On December 20, JWEL announced establishing a cross-border e-commerce strategic collaboration with Suzhou Dreamworker Info-Tech Co., Ltd. The parties are expected to set up a joint venture for providing a warehouse and supply chain service in the United States. This development is expected to facilitate the company’s cross-border e-commerce development.

On November 17, JWEL announced that Unilever PLC’s (UL) Uni-Excubator had held a strategic cooperation conference, jointly announcing strategic cooperation in China’s social media retail. The collaboration is expected to start with UL’s Hazeline Snow product to be sold on JWEL’s platform. The partnership should enable JWEL to leverage UL’s marketing prowess and benefit the company.

JWEL’s revenues increased 76.1% year-over-year to $43.81 million in the fiscal third quarter ended September 30. This can be attributed to a rise of 478.8% from the prior-year quarter in product sales from cosmetic products to $19.60 million, while product sales from household products went up 42.2% from the same period last year to $9.24 million.

JWEL’s shares have gained 107.9% since it went public on March 17 to close yesterday’s trading session at $18.11. The stock has gained 202.8% over the past three months.

GLBE shares were unchanged in after-hours trading Tuesday. Year-to-date, GLBE has gained 144.67%, versus a 29.25% rise in the benchmark S&P 500 index during the same period.

Anushka is an analyst whose interest in understanding the impact of broader economic changes on financial markets motivated her to pursue a career in investment research.

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