Three Compelling Stocks to Consider Beyond Amazon

Amazon (NASDAQ: AMZN) has achieved remarkable success over the past nearly 30 years, with a 270,000% increase since its 1997 IPO. This impressive performance drives many investors to seek further returns from the firm. However, as history shows, past success does not guarantee future results.

Shopify: The E-Commerce Leader

Another stock worth considering is Shopify (NASDAQ: SHOP), which helps brands create and manage their own e-commerce platforms.

Initially, many businesses relied on Amazon’s platform for online sales. However, as competition on Amazon grew, brands recognized the benefits of owning their own stores, facilitating Shopify’s growth.

Although Shopify no longer discloses its customer count, around 5 million stores generated $292.3 billion in sales last year, resulting in $8.9 billion in revenue and $1.1 billion in net income. These figures represent year-over-year increases of 24% and 26%, respectively. Analysts anticipate similar growth for the coming years.

The e-commerce industry has significant growth potential; only about 16% of retail spending in the U.S. occurs online, indicating room for expansion as shopping habits evolve.

Rocket Lab: The New Space Frontier

Rocket Lab USA (NASDAQ: RKLB) is positioning itself as a key player in the burgeoning satellite launch market. The company has successfully completed 64 launches of its reusable Electron rocket, deploying 225 satellites.

Rocket Lab’s Neutron rocket is set to enhance its capabilities, becoming a medium-lift option for missions to Mars and Venus. This could potentially place it in competition with SpaceX’s Falcon rocket.

While Rocket Lab isn’t profitable yet, it is strategically positioned in a growing sector. Goldman Sachs predicts the global satellite market could expand sevenfold by 2035, aligning with an expected 14.6% annual growth rate for the commercial space launch market through 2034.

Carvana: Opportunities in the Used Car Market

Carvana (NYSE: CVNA) is another stock to consider, despite being a well-known name in the used car industry. The company estimates it controls about 1% of the fragmented U.S. used car market.

This small market share highlights substantial growth potential for Carvana, which is leveraging technology and marketing to carve out its place. Increased tariffs on new cars positively impact the used car market, and Carvana has shown resilience with projected 2024 revenues of $13.7 billion, reflecting a 27% increase from 2023.

Analysts anticipate similar growth through at least 2027, especially as the average age of cars on U.S. roads reaches 12.8 years, prompting more sales. Despite being a riskier option, Carvana’s stock has recently surged past analysts’ target prices, suggesting the need for careful consideration before investing.