Beaten down eCommerce stocks sustain bounce on Thursday
da-kuk/E+ via Getty Images It’s a rare positive day for shareholders of internet retail stocks.
Shares of beaten down stocks are rebounding as relentless selling in recent weeks suddenly let up in Thursday’s trading. While the broader bounce-back for major indices lost steam in afternoon trading, many of the year’s largest losers into mid-May are the most resilient amid Thursday’s volatile trading.
Indeed, stocks like Fiverr ( FVRR +8.9%), Etsy (NASDAQ: ETSY +9.6%), Carvana ( CVNA +23.8%), Shopify (NYSE: SHOP +4.8%), Coupang ( CPNG +14.8%), Chewy (NYSE: CHWY +5.5%), and Wayfair (NYSE: W +3.7%), Jumia Technologies ( JMIA +4.2%), and Blue Apron ( APRN +6.5%), and more were some of the biggest gainers on the day. The move upward certainly breaks with the year-to-date trend for each, as each name save for Blue Apron ( APRN ) has been more than halved so far this year. “During bear-market rallies, low quality, high risk stocks that are most beaten down typically outperform,” Bank of America equity strategist Savita Subramanian said in a note on Thursday, perhaps pinpointing the impetus for the day’s move.
Read more on the stocks Subramanian sees as the most likely to rally in bear market conditions .
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