From Nasdaq: 2024-11-20 11:49:00

Shopify (NYSE: SHOP) stock is showing signs of recovery with a strong third-quarter earnings report, pushing it to its highest point since early 2022. Despite being 38% below its 2021 high, a 21% gain post-earnings indicates a shift in sentiment.

Shopify, although smaller than Amazon (NASDAQ: AMZN), has seen its online sales business grow as Amazon’s has slowed. Shopify’s market cap of $140 billion pales in comparison to Amazon’s $2.2 trillion, but it’s gaining traction in the e-commerce space.

While Shopify and Amazon aren’t direct competitors, Shopify’s e-commerce platform aids online sellers while Amazon primarily focuses on online sales and logistics. Shopify’s operating margin of around 10% outshines Amazon’s under 5% in certain segments.

Amazon maintains an edge over Shopify with its AWS cloud computing arm, dominating the industry with a 38% operating margin. AWS revenue of almost $79 billion in 2024 contributed significantly to Amazon’s overall operating income.

Despite Shopify’s growth, it’s unlikely to surpass Amazon’s market cap by 2035. Amazon’s size and diversification, including AWS, will likely keep it ahead of Shopify in the foreseeable future. Investors should consider long-term growth potential and diversification when investing in either company.



Read more at Nasdaq: Will Shopify Stock Be Worth More Than Amazon by 2035?