Ecommerce stocks are taking a beating on Wednesday as news of states reopening worries investors in online retailers.
Among the stocks falling today are Etsy (NASDAQ:ETSY), Fiverr International (NYSE:FVRR), Wayfair (NYSE:W), eBay (NASDAQ:EBAY), and Shopify (NYSE:SHOP). Even ecommerce giant Amazon (NASDAQ:AMZN) is seeing a dip in its stock today, but it isn’t as bad as the others.
One of the major catalysts for ecommerce stocks falling today is Texas announcing an end to its restrictions concerning the novel coronavirus. The state is no longer requiring residents to wear masks and is letting businesses return to normal operations.
Most states are already done with stay-at-home orders, though there are a few still holding out. On that same note, many are allowing businesses to operate fully, but still have mask mandates in place.
With more states reopening, it only makes sense that ecommerce stocks would take a hit. That’s largely due to the prospect of lost business as customers return to normal shopping habits.
On the flip side, retail companies could finally make a comeback with a return to normal operations. While it’s true that many were struggling before the coronavirus pandemic hit, an end to lockdowns could boost business. That would likely be due to an increase in shopping at physical stores from customers tired of being cooped up at home over the last year.
ETSY stock was down 10.7%, FVRR stock was down 7.8%, W stock was down 6.4%, EBAY stock was down 3%, SHOP stock was down 5.1%, and AMZN was down 1.7% as of Wednesday afternoon.
On the date of publication, William White did not have (either directly or indirectly) any positions in the securities mentioned in this article.