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Which Companies Currently Dominate the U.S. Ecommerce Market?

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Which Companies Currently Dominate the U.S. Ecommerce Market?

The Briefing

  • The top 10 U.S. ecommerce companies are expected to generate over $500 billion in sales by the end of 2020
  • That’s an estimated 63% of total ecommerce sales in the U.S.

The Companies Dominating the U.S. Ecommerce Market

While the migration online has been happening for years, COVID-19 has certainly helped to accelerate things, particularly when it comes to online shopping.

This year, the U.S. has seen a significant spike in online sales. By the end of 2020, ecommerce is expected to make up 14.5% of all U.S. retail sales, compared to 11% in 2019.

That’s the biggest year-over-year increase U.S. ecommerce has seen since 2008.

And, while online shopping overall has shown exceptional growth, only a small group of retailers make up the majority of sales—in 2020, the top 10 eretailers will capture an estimated 63% of total market share.

Who are the top players, and how much space do they take up in the U.S. ecommerce market?

CompanyEst. 2020 U.S. sales (billions)% of total U.S. ecommerce sales
Amazon$309.6 B39.0%
Walmart$46.2 B5.8%
eBay$38.8 B4.9%
Apple$27.5 B3.5%
The Home Depot$16.7 B2.1%
Best Buy$15.7 B2.0%
Target$13.8 B1.7%
Wayfair$11.7 B1.5%
The Kroger Co.$11.3 B1.4%
Costco Wholesale$11.2 B1.4%

Unsurprisingly, Amazon outranks its peers significantly, taking up 39.0% of the overall market. In contrast, the second-largest eretailer, Walmart, makes up only 5.8%.

As ecommerce continues to grow and mature, will competitors gain ground, or will Amazon continue to dominate the online world?

» Interested in ecommerce, and Amazon’s market dominance? Read our full article: Visualizing the Size of the World’s Most Valuable Retailer.

Where does this data come from?

Source: Emarketer.
Notes: Numbers have been rounded for clarity.

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Datastream

Which Industry Boasts the Most Billionaire Wealth?

After the coronavirus-related market crash in early 2020, billionaires across every sector saw a double-digit increase in wealth.

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which industry boasts the most billionaire wealth

The Briefing

  • In every single sector, billionaire wealth saw positive growth from 2019 to 2020
  • Billionaire wealth in technology reached $566 billion after growing 41%, while healthcare reached $548 billion, growing 36%

It’s a Billionaires World

During the pandemic, billionaire wealth has shot up an average of 27% across various industries. Concurrently, the middle and working class have struggled, U.S. unemployment reached record highs, and millions of Americans are worried about facing eviction or foreclosure in the near future.

Tech and Healthcare Pull Ahead of the Pack

The industries that historically promote wealth creation for billionaires have undergone a number of changes in recent times.

Technology and healthcare have surged ahead of the pack, as companies in these industries possess qualities that have made innovation a huge value and growth driver. Innovative factors include AI, big data analytics, and a digital and cloud footprint.

IndustryWealth Per Industry ($ Billions)Growth Rates between April-July 2020
Technology$565.741.1%
Health industries$548.036.3%
Industrials$376.944.4%
Real estate$342.512.9%
Consumer & retail$300.126%
Other/diversified$268.120.7%
Financial services$229.112.8%
Materials$206.129.6%
Entertainment & media$204.120.7%

The pandemic enabled those well equipped to pivot towards the new environment and business landscape, while those without these advancements were forced to haphazardly adjust.

As a result, billionaires in these two industries have reaped great rewards. Between April-July 2020 they generated $164.8 billion and $145.7 billion in wealth between technology and healthcare respectively.

Playing Catchup

The graphic shows the two leading industries building a considerable spread between them and those lagging behind. As these innovative technologies take the mainstream, it may suggest the other industries will have the chance to catch up.

In real estate for instance, the wave of innovation is least prevalent according to the original report, yet disruption and innovation are already on their way. Consider two stocks in Zillow and Redfin: the first operates in residential real estate services exclusively through web and mobile, while the latter is a digital real estate brokerage that has the potential to undercut real estate agents.

Could these industry wealth results in a post-pandemic world look very different?

Where does this data come from?

Source: PWC Billionaires Report.
Notes: This data was released in the summer of 2020

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Tesla Bears: A Short Short Story

Tesla has gained infamy for the sheer depth of short seller activity on its stock. After years of 20% of shares short, the 2020 rally has led to capitulation for Tesla bears.

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The Briefing

  • Tesla, Inc has gained infamy for the sheer depth of short seller activity on its stock. At its peak in 2019, over 200 million shares were short
  • However, short sellers have recently capitulated, thanks to Tesla’s monster year
  • TSLA shares are up roughly 600% YTD

Tesla Bears: A Short Short Story

Short selling is often said to be the Wild West of financial markets. Where there’s a short seller, there can be whipsawing asset prices just around the corner. Tesla is no exception.

In some cases billions of dollars pour behind these short ideas—conducted by some of the world’s most sophisticated investors.

The efficient market hypothesis suggests short selling is a necessary evil that helps the market reflect on all the information of a given security and obtain its true market value. Yet most market participants are anything but receptive to short sellers.

The market—which tends to be long, often panics when a short seller enters the arena and takes the opposite stance. What typically follows is an avalanche of legal and regulatory action from corporate lawyers to the SEC.

In the case of Tesla, short sellers couldn’t have gotten it more wrong – at least for now. Some market commentators call it the most unprofitable short witnessed. The data shows that approximately 20% of Tesla shares have been held short since 2016. This year a reported $27 billion has been lost betting against Tesla.

DateShares Sold ShortDollar Volume Sold Short
October 30th, 202047,800,000$19 billion
October 15th, 202052,960,000$22 billion
September 30th, 202057,130,000$25 billion
September 15th, 202059,040,000$24 billion
August 31st, 202054,890,000$20 billion
August 14th, 202012,310,000$5 billion

Tesla’s short thesis is often anchored around a few compelling narratives. The first is that Tesla’s present day fundamentals are poor—a $530 billion company delivered 139,300 vehicles in Q3’20 and turned a $331 million profit. That’s after government subsidy programs.

The second, the electric vehicle market is expected to be competitive with many players, and short sellers make the point Tesla is currently priced as the sole-winner in this space.

We don’t know how the future EV market will transpire, but with Tesla shares up 600% year-to-date, and with the company set to join the S&P 500, some bears look to be calling it quits.

Where does this data come from?

Source:Ycharts
Notes: Financial data is as of December 2nd, 2020

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