[The $5 Trillion Pattern] 3 Stocks to Ride the Coming Boom

Inside, learn why the markets were thrilled with last week's jobs data. Picks from the Editor SPONSORED (Newsletter Continues Below) Sponsored [Your Chance to Get a Piece of the Crypto Pie]( Cryptos could be staging a comeback in 2023. This could be your chance to take part in a historic rally.[See the best coin to buy right now.]( [Privacy Policy/Disclosures]( Tech's Next Big Thing: 3 Top Stock Picks for a $5 Trillion Boom  Hi Traders,  Alright folks, get ready because the e-commerce world is about to go boom! Morgan Stanley predicts that by 2027, the industry will be worth a whopping $5 trillion, up from $3.4 trillion in 2022. That's an 8% compound annual growth rate, in case you're keeping score. Morgan Stanley analysts have observed a shift towards profitability over growth throughout 2022. They believe that this trend, along with a more rational investment and customer acquisition approach, will support the case for marketplace monetization and profitable growth potential. Sounds like a win-win, right? The bank has identified some top-notch stocks to ride this e-commerce wave, based on factors like outsized growth potential, market leadership, and attractive trading multiples. So, let's take a closer look at their three top picks: Amazon, Alibaba, and Argentinian company MercadoLibre. First up, Amazon. Although the company has a 37% market share in U.S. e-commerce, it's only captured 9% of U.S. retail sales. Morgan Stanley thinks there's plenty of room for growth as consumers continue to make the shift to online shopping. They noted that Amazon is still ahead of the pack when it comes to core consumer offerings and overall business volume. The bank is also pretty bullish on Amazon's cloud business, AWS, expecting it to grow around 19% YoY in 2024. With a price target of $150, Amazon's stock has a potential 42% upside. Next on the list is Alibaba. Morgan Stanley believes the market has underestimated Alibaba's leverage to a consumption recovery in China. They find the current valuation attractive and think the stock doesn't fully represent the value of its cloud, other business segments, and investments. The bank sees Alibaba as a key beneficiary of easing regulations in China and expects it to outperform other Chinese internet stocks. With a price target of $150, Alibaba's stock has an impressive 80% potential upside. Last but not least, we have MercadoLibre. This Latin American e-commerce and fintech leader is seen as a share gainer in a region with a multiyear e-commerce penetration opportunity. Morgan Stanley predicts that MercadoLibre's regionwide share will grow by 2 percentage points to 31%, thanks to its logistics investments and benefits of scale. The bank is confident that the company can capitalize on the expansion of services such as advertising and logistics. With a price target of $1,770, MercadoLibre's stock has a potential 42% upside. Understand guys that E-commerce is on the rise, and these three heavyweight stocks are positioned to reap the benefits. If you're looking to hop on the e-commerce bandwagon, keep a close eye on Amazon, Alibaba, and MercadoLibre as they ride the wave of this growing industry. And remember, while it's always fun to discuss potential stock winners, it's essential to do your own research and review your risk profile before making any investment decisions.  Keep on keeping up!  John @ Traders on Trend  (In the next article: Why the bullishness after last weeks jobs data? Find out below! 👇) Sponsored [The End of the Dollar]( Take a good look at this building. This is the command center for one of the most devastating plots in American history. A plot that could make the money in your wallet worthless ... and “give federal officials FULL CONTROL over the money going into, and coming out of, every person’s account.” And that’s just the tip of the iceberg.[Go here to get all the details.]( [Privacy Policy/Disclosures]( Check the Free Presentation Today ☝ SPONSORED Wall Street Cheers the Latest Labor Report: Here's Why You know what's funny? Last Friday's market rally. I mean, it's not exactly a Shakespearean comedy, but the absurdity of the situation is quite entertaining. Here's the deal: the payroll report came out last Friday, and it was a bit of a head-scratcher. March and February payrolls were revised down, but April's numbers came in much stronger than expected. Unemployment dropped, wages grew, and the economy seemed pretty robust. And so, the financial markets decided to have a little party. But hold on a second.  Let's dig a little deeper into this whole job report situation. Estimates for nonfarm payrolls were 180,000, but we got a whopping 253,000. This pushed unemployment down to 3.4%, tying the lowest level in more than five decades. Hourly earnings rose too, both monthly and yearly. The numbers were quite impressive, to say the least. And yet, amidst this Herculean labor market strength, the stock market decided to go on a wild ride, with the Nasdaq leading the charge. Doesn't that seem a little… odd? The thing is, Wall Street has been desperately hoping for the Fed to stop hiking rates and go back to its dovish ways, maybe even cutting rates later this year. But for that to happen, the economic data must show the Fed that its rate hikes are indeed slowing the economy down. And Powell, our dear Fed Chair, has been focused on the labor market and wage growth for months.   (article continues below) Sponsored [This Trade Has Paid Out 99.1%]( We’ve made THIS simple trade over and over again… for years. The result? It’s cashed in winning trades 99.1% of the time. We call it the “310F Trade.” Getting into this “rinse and repeat” trade each Tuesday… could double your money by Friday. Sound too good to be true?[See how we’ve done it, week after week...for YEARS]( [Privacy Policy/Disclosures]( SPONSORED  🔼 Pay attention, this is worth your time! ☝  (article continues)  So, when last Friday's job report came out stronger than expected, logic would dictate that Wall Street should be crying in despair, and Powell should be rethinking his dovishness. The data indicate that the Fed might have to keep interest rates higher for longer to control inflation. And yet, instead of selling off, the markets went up, with the Nasdaq leading the way. The question is, why the celebration? Sure, we could point to Apple's good earnings report or some easing banking fears, but the labor market report should have been the focus of the day. It seems like a very illogical response. So, what are we to do in the face of this inconsistent economic data and the manic market? The Fed holds the stock market's fate in its hands. If the Fed turns dovish, the market will rejoice. If it remains hawkish, the market will throw a tantrum. Now, keep in mind that the bulls don't just need a rate pause. They need a pause, followed by cuts. If the Fed Funds rate stays at 5.00% to 5.25% for the rest of the year, the economy will suffer. The Fed has been repeating that data will drive its policy decisions. And while there's plenty of data suggesting the Fed's anti-inflation efforts are working, the unemployment rate and wage gains posted bad results if we're looking for evidence of a slowing economy. Expecting rate cuts in 2023 requires believing that Powell and the various Fed presidents are lying through their teeth, which seems unlikely. So, the only other explanation for the high rate-cut certainty is that the Fed will be forced to cut due to a recession that demands an accommodative policy. But does that environment sound ripe for a booming bull market? I want a dovish Fed like everyone else, but if the labor market data and wage gains are driving much of the Fed's interest rate policy, then last Friday's jobs report wasn't good news, and the stock market's reaction was, well… just plain silly.   Disclaimer:  The material in this document is for informational purposes based on our proprietary research. It is not an offering, specific recommendation, or a solicitation of an offer to buy or sell any securities mentioned or discussed herein.  Any performance results discussed herein represent past performance, are not a guarantee of future performance, and are not indicative of any specific investment.  Due to the timing of information presented, any investment performance reflected within this document may be adjusted after the publication and distribution of this material. There can be no assurance that the future performance of any specific investment, investment strategy, or product made reference to directly or indirectly in this communication will be profitable, be equal to any corresponding indicated historical performance levels or be suitable for your portfolio.  Any investment results set forth in this document are not net of expenses and execution costs, nor do they account for other relevant trading or investment fees. Please visit tradersontrend.com/terms for our full Terms and Conditions.   [UNSUBSCRIBEÂ]( TradersOnTrend.com  COE MEDIA.   1126 S Federal Hwy Unit #827   Fort Lauderdale, FL 33316Â