On the same day that Shopify (NYSE: SHOP) released its first-quarter 2023 earnings report, its CEO also released a letter announcing the company will be releasing 20% of its workforce and selling Shopify Logistics to Flexport. Shareholders liked hearing that it ended its dreams of being a logistics company and is focusing more on its core mission to "make commerce better for everyone." Additionally, investors cheered when the company beat analysts' revenue and earnings expectations, resulting in the stock jumping 23.83% higher. However, although Shopify's long-term future looks bright, you should hold off buying the stock today. Here's why.

The stock has a rich price-to-sales (P/S) ratio of 12.37, higher than the S&P 500's P/S ratio of 2.4. Its valuation is also much higher than other publicly traded e-commerce infrastructure companies, as shown below.

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Source Fool.com