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♟ Cyber Monday: 2 "Buy Now, Pay Later" Stocks

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Buy Now, Pay Later

"'Buy now, pay later' payments increased 78% compared with the past week as consumers continue to account for high prices and inflation."

Bryan Bottarelli, Head Trade Tactician, Monument Traders Alliance

Bryan Bottarelli

As I'm sure you heard, Black Friday shopping stats this past weekend were surprisingly strong.

Here are some highlights...

  • Black Friday online sales topped $9 billion - a new record.
  • Overall online sales for Black Friday were up 2.3% year over year.
  • "Buy now, pay later" payments increased 78% compared with the past week as consumers continue to account for high prices and inflation by doing what Americans do best: getting something right now and worrying about paying for it later. Genius!
  • Toys and exercise equipment were two of the most popular groups, gaining 285% and 218% over October sales totals, respectively.
  • Black Friday shoppers also broke a record for mobile orders, as 48% of online sales were made on smartphones, up from 44% last year.

And now, today... it's Cyber Monday.

Let's all buy even more stuff!

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According to Adobe, online sales are expected to drive $11.2 billion in spending, which would be an increase of 5.1% year over year.

Given all this spending, here are some retail names I like...

  • Affirm Holdings (AFRM) and Block (SQ): Two of the top "buy now, pay later" names could see a boost from this weekend's retail trends.
  • Costco (COST): As Target suffers, Costco continues to shine no matter the market conditions.
  • Nordstrom (JWN): I believe that Wall Street is discounting the company's Nordstrom Rack division, which has a line a mile long every time I walk into the store.
  • Dick's Sporting Goods (DKS): Sporting goods are outperforming Black Friday sales this year, which could continue to boost Dick's.
  • Lululemon Athletica (LULU): The company's $100 yoga pants continue to fly off the shelves - even without discounts.
  • Bath & Body Works (BBWI): 60 million U.S. customers shop at the store 3X per year on average.
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MONDAY MARKET MINUTE

  • Luxury Brands Stay Strong: High-end names never seem to be impacted by global spending trends, and Moët Hennessy Louis Vuitton (LVMUY) continues to deliver standout growth. LVMUY's revenue is up 28% to $36.7 billion in 2022, and profits were strong as well. Tracking.
  • iPhone Production Slows: Apple (AAPL) was down 2% in premarket trading after Bloomberg reported turmoil at Foxconn's hub in Zhengzhou, which is likely to slow production of Apple's iPhone 14 Pro in 2022.
  • Solar Company Dips: First Solar (FSLR) is down 3% after J.P. Morgan analyst Mark Strouse downgraded the stock from "Overweight" to "Neutral" with a price target of $190, up from $147.

 

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