INNOVATION

Unlocking e-commerce potential in a digital world

21 January 2025
Invesco
An industrial robot at work; an example of innovation driven by some of the category-defining companies that make up the Invesco QQQ ETF.

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The rapid growth of e-commerce continues to reshape the global economy and present potential opportunities for investors. By 2027, the global e-commerce market is expected to reach about $8 trillion, with nearly a quarter of all sales, driven by increased internet penetration, evolving consumer habits, and advances in digital technologies.1

With the rise of cashless transactions, personalized shopping experiences, and same-day delivery, e-commerce has become an integral part of modern life. Investors looking to capitalize on this innovative sector might consider Invesco QQQ ETF for exposure to leading companies that dominate the e-commerce landscape.

Past and projected retail e-commerce sales worldwide (2021-2027)

Source: eMarketer, “Worldwide Retail Ecommerce Forecast 2024,” February 2024.

QQQ, which tracks the Nasdaq-100® Index, provides exposure to 100 of the largest non-financial companies on the Nasdaq. These companies represent a diverse array of industries, including technology, consumer services, and healthcare.

Several of the holdings in QQQ play a key role in e-commerce, offering exposure to the sector's most innovative and disruptive companies. Through QQQ, investors can gain access to the industry giants driving the future of online shopping, digital payments, and retail logistics.

Below, we explore some of the key e-commerce players in QQQ and their contributions to the industry’s ongoing transformation. This balanced selection highlights companies that are both core to and facilitators of e-commerce, giving investors exposure to various aspects of the sector through QQQ. 

Amazon

No conversation about e-commerce would be complete without mentioning Amazon, a leader in the space. Founded in 1994 as an online bookstore, Amazon has since evolved into a global marketplace offering everything from electronics to groceries. Its Amazon Prime service, renowned for its fast delivery and streaming benefits, has transformed customer expectations around online shopping. Beyond its retail arm, Amazon Web Services (AWS) plays a critical role in supporting the infrastructure behind e-commerce platforms. Amazon’s dominance in logistics, delivery, and cloud computing solidifies its status as a cornerstone of QQQ's e-commerce exposure.

MercadoLibre

MercadoLibre operates an extensive online marketplace across multiple countries, including Brazil, Argentina, and Mexico. The platform provides a comprehensive range of services, from e-commerce transactions to fintech solutions through its integrated payment system, MercadoPago. By addressing the unique needs of Latin America’s growing digital economy, MercadoLibre has become a crucial player in the global e-commerce ecosystem. QQQ may benefit from MercadoLibre’s strong growth potential as it expands its influence in this rapidly developing region.

PayPal

PayPal is a leading digital payment platform that plays an integral role in the e-commerce ecosystem. Its ability to facilitate secure, cashless transactions across various online marketplaces makes it essential for e-commerce operations. PayPal’s vast user base, combined with its popular subsidiary Venmo, ensures that it remains a dominant force in online payments. PayPal continues to innovate, expanding its services to support cryptocurrency transactions and buy-now-pay-later options. PayPal offers exposure to the financial backbone of e-commerce.

Adobe

Adobe may not immediately come to mind as an e-commerce company, but its digital marketing and analytics tools are crucial to optimizing online businesses. Adobe Experience Cloud enables companies to personalize their digital storefronts, create targeted advertising campaigns, and analyze consumer behavior to improve the shopping experience. Adobe’s innovations in marketing technology and data-driven personalization are invaluable to e-commerce companies seeking to enhance customer engagement.

Meta Platforms

Meta is increasingly involved in e-commerce through its social commerce platforms like Facebook Marketplace and Instagram Shopping. These platforms allow businesses to sell directly to consumers through targeted ads and personalized product recommendations, making Meta a powerful player in the e-commerce space.

Alphabet

As the parent company of Google, Alphabet provides essential services for e-commerce through its Google Shopping platform and vast digital advertising network. Its ability to connect consumers with retailers through targeted search ads and personalized shopping recommendations makes Alphabet a critical component of the e-commerce infrastructure.

Getting exposure to e-commerce with QQQ

Through QQQ, investors may gain exposure to a wide range of companies that are leading the charge in e-commerce innovation. From Amazon’s dominance in global logistics to PayPal’s payment platform, these companies exemplify the disruptive potential of e-commerce. As the sector continues to expand, QQQ can offer an efficient way to access the growth opportunities in this dynamic market.

Key takeaways:
  • The rapid growth of e-commerce continues to reshape the global economy, presenting potential opportunities for investors.
  • By 2027, the global e-commerce market is expected to reach about $8 trillion, driven by increased internet penetration, evolving consumer habits, and advances in digital technologies.
  • Through QQQ, investors gain exposure to a wide range of companies that are leading the charge in e-commerce innovation. 

Footnotes

  • 1

    eMarketer, “Worldwide Retail Ecommerce Forecast 2024,” February 2024.

Important Information

  • The opinions expressed are those of the author, are based on current market conditions and are subject to change without notice. These opinions may differ from those of other Invesco investment professionals.

    Forward-looking statements are not guarantees of future results. They involve risks, uncertainties and assumptions; there can be no assurance that actual results will not differ materially from expectations.

    This information is provided for informational purposes and does not constitute an endorsement or recommendation of any companies referenced.

    This content should not be construed as an endorsement for or recommendation to invest in Amazon, MercadoLibre, PayPal, Adobe, Meta, or Alphabet. Neither Amazon, MercadoLibre, PayPal, Adobe, Meta, nor Alphabet are affiliated with Invesco. Only 6 of 101 underlying Invesco QQQ ETF fund holdings are featured. The companies referenced are meant to help illustrate representative innovative themes, not serve as a recommendation of individual securities. Holdings are subject to change and are not buy/sell recommendations. See https://www.invesco.com/hk/en/etfs/invesco-qqq.html for current holdings. As of 2/14/2025, Amazon, MercadoLibre, PayPal, Adobe, Meta, and Alphabet made up 5.90%, 0.65%, 0.47%, 1.22%, 3.94%, and 5.20%, respectively, of Invesco QQQ ETF.

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