The E-Commerce Winners and Losers of a Hawkish Fed
Powell has acknowledged the dilemma that multidecade highs in inflation have caused, thus committing to an aggressively hawkish monetary policy. Given the vast implications of rising borrowing costs, e-commerce stocks — Amazon (NASDAQ:AMZN), Shopify (NASDAQ:SHOP), PayPal (NASDAQ:PYPL), and MercadoLibre (NASDAQ:MELI) — will likely be significantly impacted. Some will be winners while others will be losers. According to TipRanks Team, “Fed funds futures are pricing in an 85% probability that rates could be 125 to 150 basis points higher by the end of the year.” The framework presents an intriguing ecosystem for e-commerce stocks, with certain companies likely to flounder while others may enjoy relative benefits.
The E-Commerce Winners and Losers of a Hawkish Fed
Powell has acknowledged the dilemma that multidecade highs in inflation have caused, thus committing to an aggressively hawkish monetary policy. Given the vast implications of rising borrowing costs, e-commerce stocks — Amazon (NASDAQ:AMZN), Shopify (NASDAQ:SHOP), PayPal (NASDAQ:PYPL), and MercadoLibre (NASDAQ:MELI) — will likely be significantly impacted. Some will be winners while others will be losers. According to TipRanks Team, “Fed funds futures are pricing in an 85% probability that rates could be 125 to 150 basis points higher by the end of the year.” The framework presents an intriguing ecosystem for e-commerce stocks, with certain companies likely to flounder while others may enjoy relative benefits.