As more and more people get vaccinated and the economy opens up, consumers are heading back into stores. This is great news for brick and mortar stores. But they may mean that investors are likely to take profits from e-commerce stocks such as Pinduoduo (NASDAQ:PDD), Jumia Technologies (JMIA), and Etsy (NASDAQ:ETSY).Now that life is returning to normal more consumers are choosing to shop at traditional brick-and-mortar retail stores. In other words, this might be an opportunity to temporarily shift money out of e-commerce stocks, possibly moving some of the funds to conventional brick-and-mortar retailers.
The potential return to traditional retail might be short-lived, yet it will certainly provide investors with even more reason to take profits off the table with their e-commerce holdings. The plain truth of the matter is several e-commerce stocks are overvalued.
Here is a quick look at three overvalued e-commerce stocks investors should steer clear of in the quarters ahead: Pinduoduo (PDD), Jumia Technologies (JMIA), and Etsy (ETSY).