Wells Fargo touts Amazon, Chewy as e-commerce winners into year-end
Daria Nipot

In a note expressing cautious optimism on holiday sales, Wells Fargo highlighted Amazon (NASDAQ:AMZN), Chewy (NYSE:CHWY), and eBay (EBAY) as promising picks for investors.
The bankâs analysts pointed to strong online sales growth, sustained post-pandemic, as an indicator that online retail remains sticker than expected. Additionally, as consumers increasingly focus on price amid inflationary pressure, category leaders on convenience and price are expected to continue picking up market share.
âWe think Amazon (AMZN), a price leader offering wide selection and convenience, and Chewy (CHWY), a category price leader, are well positioned for this holiday season and the changing macro environment,â the analysis stated. âWe also point out that eBay (EBAY) generally benefits from consumers turning more price-sensitive.â
The team noted that Amazon was a price leader in 14 of 15 categories surveyed, leading major retailers like Walmart (WMT), Target (TGT), Best Buy (BBY), and Wayfair (W) that were included in comparisons. The Seattle-based tech giant was tied with Chewy (CHWY) in pricing for pet supplies, the only category it did not lead. Amazon held an average pricing advantage of 13% in the categories surveyed.
Discounting across the industry, led by many of the aforementioned names, has also apparently kept bargain-hunting consumers' spending. Cyber Monday sales reached a record, according to Adobe Analytics, overshadowing Black Friday sales by a wide margin.
While entertainment, airfares, food, and transportation prices have all inflated substantially, gift categories have counterintuitively deflated. According to Bankrate, 7 of the 10 least inflated items can be placed in the gift category. In the case of electronics like smartphones and televisions, prices have actually fallen by double-digit percentages from the prior year. Additionally, computer and device prices have fallen 3.1% as compared to 2021. 
The National Retail Federation also pointed to promotions as a key to attracting a record 196.7M shoppers over the Black Friday/Cyber Monday holiday weekend.
âAs inflationary pressures persist, consumers have responded by stretching their dollars in any way possible. Retailers have responded accordingly, offering shoppers a season of buying convenience, matching sales and promotions across online and in-store channels to accommodate their customers at each interaction,â NRF President and CEO Matthew Shay said. âIt is important to note that while some may claim that retail sales gains are the result of higher prices, they must acknowledge the historic growth in consumers who are shopping in-store and online during the long Thanksgiving holiday weekend and into Cyber Monday. It is consumer demand that is driving growth.â
To be sure, the health of the average consumer in the US is increasingly coming into question as sales figures defy the expected belt-tightening commonly present amid rising inflation. As a single point of data, the personal savings rate recorded by Federal Reserve data is on par with levels last seen during the Great Recession. 

Wells Fargo noted that credit card debt increased $38B during the third quarter, the largest jump in that metric in two decades. As such, spending at the current rate past the immediate holiday shopping season may not be sustainable. However, that only amplifies their rationale for choosing price leaders as projected top performers into the holidays and 2023.
âAgainst this backdrop, we expect consumers to be more value-driven this holiday shopping season, which should benefit online retailers and Amazon (AMZN) in particular,â the team concluded.
Read more on Cyber Monday sales data.