The great confinement caused investors to draw attention to the giants of e-commerce and logistics and distribution. Mercado Libre and Amazon are among the stations that boosted the rally on Wall Street since its historic falls in March.
So far this year, Mercado Libre accumulates a return on the stock exchange of 192%, while Amazon's securities rise 75%, higher than those of the Nasdaq Composite technology index, which is advancing 41%.
Thus, the capitalization of the Free Market amounts to $83 billion, according to YCharts estimates, an increase of $55 billion compared to the last close of 2019.
Analysts attribute the good performance of Mercado Libre to the expansion and growth opportunities it has had in Latin America, where it controls 28% of the market, according to Morgan Stanley.
The bank recommended in recent days the purchase of the company's shares due to the potential they see in the growth of buyers and in the possibilities to increase their capacity of Logistics Management and their Global Business Services.
The Latin American region is also in the early stages of the digitization of retail, which opens the door to high growth rates.
Amazon, as a company with higher penetration worldwide, has a lower growth rate than its smaller competitors.
Free Market is a more attractive action for fast yields, while Amazon is seen as an option to give stability to the investment portfolio, he stressed.
Amazon's stock rally and Mercado Libre could have peaked in 2020, as the valuations of both companies are already very high, which could lead to a take profit.
The analyst attributes the uptick in the shares of companies in this sector to market speculation, the injection of liquidity from the Federal Reserve (Fed), as well as a recovery in consumption.
What to expect from your reports?
While the dizzying rise in the value of stocks may be over, expectations about e-commerce growth by 2021 are positive.
'It's going to continue to grow, we see it as an alternative for consumers, and it will continue to have significant participation because after this new normality the economic issue was set up again,' Calzada said.
Just earlier this month, Jeff Bezos' company revealed that it had the biggest Christmas season start in its 26-year history driven by Black Friday and Cyber Monday. Further, UPS set to bring 95,000 workers on board in preparation for the upcoming holidays.
'By (the fourth quarter) of 2020 we need to see a very fast sales increase, even more than we've seen in recent quarters, especially driven by these dates,' Rodriguez said.
In the third quarter of the year, Free Market revenue increased 85%, to $1.1 billion, compared to the same period last year, and total payment volume grew 92%, to $14.5 billion.
While Amazon's sales increased to $96.15 billion in the July-September period, compared to $69.98 billion in the same period of 2019, exceeding analyst expectations.
FedEx and UPS, the other winners
FedEx and United Parcel Service (UPS) are pioneers in logistics and distribution, and increased orders with the pandemic were also reflected in their performance. Also, UPS, FedEx collaborate to ship the Covid-19 vaccine.
By 2020, FedEx shares are up 91%and its market value is $75.8 billion, while UPS securities are 45%, with a capitalization of $147 billion.
FedEx will present its quarterly results on Thursday and analysts estimate a 60% increase in its profits.
UPS has also intimated its Employees to Work from Home for the next 6 months.
Employees have been working with an exclusive portal i.e., UPSers.comsite. Upsers is an online Portal used by UPS Employees.
They log in and Enter the Number for Tracking that appears on the label received by the Customer and let them know the status of delivery.
Futuristic Drones That Ups Will Use to Deliver Packages
Using drones to deliver packages is an idea by some logistics company that has been chasing for years. Different ideas have emerged in recent times and there are already those who use them to deliver medicines for example.
Now it's UPS who let's see the drone they plan to put in the air next to Wingcopter. A drone that takes off and lands like a helicopter but flies like a plane.
Ups Flight Forward and UPS Freight subsidiaries are established a year ago and its purpose is to find and develop new ways to deliver packages by air to areas where this method or the only viable one is most effective. Since October last year, you are in fact allowed to operate as an airline. Previously UPS has tried other ideas such as a truck drone station using Tractor-Trailer Drivers.
Aircraft advantages and helicopter advantages in one vehicle
German start-upWingcopter has been developing its drone idea for some time. An idea in which the drone includes both propellers and wings. Use the former Automotive Fleet Supervisor to take off and land vertically without requiring long runways. The wings on the other hand serve you to plan long distances and therefore consume less energy than a drone with normal and ordinary vertical propellers. The change is done directly in the air, attaching or deploying your vertical propellers as needed.
Wingcopter indicates that its eVTOL (electric vertical take-off and landing aircraft) achieves a range of 120 kilometers. As for speed, they claim to have the world record for such vehicles with a maximum of 240 km/h. Strong winds or bad weather indicate that they are not a problem for autonomous drone flight.
Being able to move to a fixed-wing and not rely on propellers also means making a quieter flight. UPS says it is one of the reasons why they opted for collaboration with Wingcopter, as this is especially useful when flying over cities or populated areas.
WingcoptereVTOL that UPS wants to use is no concept, they have been operating for a long time. They explain that they have used these drones to carry packages between different factories or for humanitarian actions in which to deliver medicine in collaboration with UNICEF and other organizations. For its part, UPS also has already had a time operating with shipping packages (of medicines in this case) by air.