With department stores dying and U.S. consumers shifting their shopping habits from the mall to the couch, Cyber Monday shattered online shopping records once again this year. Already, several retailers have emerged as Cyber Monday stock winners.
Shoppers spent a record $6.6 billion on Cyber Monday, a 17% increase over last year and the biggest online shopping day in U.S. history. It came on the heels of a weekend in which a combined $7.9 billion was spent shopping online on Thanksgiving and Black Friday. That’s $14.5 billion that U.S. shoppers spent online in just three days!
A lot of that cash was spent on a few hot new products, resulting in big pay days for the retailers peddling them. As a result, investors are snatching up shares of those retail stocks like they’re on sale.
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Here are the three biggest Cyber Monday stock winners in the wake of this year’s record-setting Cyber Monday:
Cyber Monday Stock Winner #1: Nintendo (NTDOY)
A favorite of our own Tim Lutts at our 2016 Cabot Wealth Summit, Nintendo stock (which trades over the counter in the U.S.) was up slightly on Tuesday after the video-game maker made a killing on its Nintendo Switch on Monday. The company’s new mobile video-game console was in such demand that Nintendo didn’t even put a Cyber Monday discount on its $299 starting price. It was the top-selling product on Cyber Monday, Black Friday and Thanksgiving. Another huge seller was Nintendo’s Super Mario Odyssey game, the latest installment of Nintendo’s signature video-game franchise.
Though the post-Cyber Monday gains in NTDOY were modest, investors had been snatching up Nintendo shares in advance of the year’s biggest shopping weekend—the stock is up 26% in the last three months, including an 9.5% run-up in November.
Cyber Monday Stock Winner #2: Roku, Inc. (ROKU)
The honeymoon continues on Wall Street for this streaming-device maker. ROKU stock was up more than 10% on Tuesday after its devices and operating systems were a big seller on Cyber Monday, according to Adobe Data. At 51, ROKU has now more than tripled from its late-September IPO (14).
Given that momentum, should you buy Roku stock? Tyler Laundon, our small-cap stock expert, recently wrote that ROKU “seems like a risky bet”—and that was when the stock was still trading at 40. Still, the momentum in ROKU is hard to deny, especially after its latest gap up on Tuesday.
Cyber Monday Stock Winner #3: Microsoft (MSFT)
Apple (AAPL) had a good Cyber Monday, thanks to major interest in its AirPods and iPads, as did Google (GOOGL), thanks to the Chromecast. But Microsoft (MSFT) got a bigger Tuesday bounce than both of its larger competitors due in large part to the popularity of its Xbox One X gaming console. It was only up 1% on Tuesday, but the upmove was just the latest for MSFT, which has quietly risen more than 16% in the last three months, and is up more than 36% in 2017.
It doesn’t get the same attention as Apple or Google, but Microsoft is experiencing a resurgence in popularity among consumers and investors alike. The last two days have been a microcosm of the Microsoft rebound.
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