Online Retail Still Rising in 2026: 3 Stocks to Ride the Boom

Group 1: Industry Overview - The global e-commerce market is projected to grow from approximately $31.2 trillion in 2025 to nearly $37 trillion in 2026, driven by digital transformation in retail and increasing online commerce [1][7] - Key factors contributing to this growth include rising smartphone penetration in emerging markets, buy-now-pay-later options, increased consumer trust in digital payment security, and a shift in advertising budgets towards e-commerce platforms [1][2] Group 2: Technological Advancements - Artificial intelligence is expected to play a significant role in online retail by 2026, with retailers deploying AI-driven tools for recommendations, search optimization, and personalized marketing to enhance customer engagement and conversion rates [3] - AI applications in demand forecasting, inventory management, and dynamic pricing are helping platforms improve efficiency and reduce stockouts [3] Group 3: Structural Trends - Faster fulfillment through same-day and next-day delivery is a key driver for online retail, reducing friction in purchase decisions [4] - Social commerce is gaining traction, enabling in-app shopping and live commerce, which shortens the path from engagement to transaction [4] - Cross-border e-commerce is expected to benefit from improved logistics and localized fulfillment networks, expanding market reach for leading platforms [4] Group 4: Company Performance - Expedia Group's shares increased by 32.8% over the past three months, driven by B2B momentum and margin expansion, while Amazon's shares rose by 3.7% due to diversified revenue streams [5] - Fiverr International's shares declined by 20.4% amid concerns regarding AI competition in the freelance services sector, highlighting varying performance among digital commerce leaders [5] Group 5: Company Insights - Expedia is well-positioned to benefit from the digital migration of travel bookings, with AI-powered search capabilities enhancing conversion rates and lower interest rates expanding discretionary budgets [8] - Fiverr's platform benefits from network effects and a predefined gig structure that simplifies transactions, with a growing marketplace across over 500 service categories [9] - Amazon is expected to capture significant online retail growth, leveraging its logistics network and Prime ecosystem to enhance customer loyalty and drive high-margin advertising revenue [12]