Better Buy: Amazon vs. Shopify Stock
Wall Street could hardly be more excited about tech stocks right now, especially those with exposure to popular growth spaces like artificial intelligence (AI) and enterprise services. These investments rallied in 2023 into 2024 on falling fears about a recession developing this year. Companies in these niches are reporting faster sales gains and improving earnings power, two key factors supporting market-beating shareholder returns.
Amazon (NASDAQ: AMZN) and (NYSE: SHOP) are two excellent examples. The companies have different approaches but have each identified e-commerce and merchant services as huge long-term growth avenues. Against that backdrop, let's look at which impressive stock would make the better long-term buy for investors today.
Amazon is a huge business, and as so its growth rate is limited by that massive size. Sales rose 14% in the fourth quarter, improving to $170 billion from $149 billion a year ago. Compare that to Shopify's blazing 24% revenue increase in the same period (with sales landing at $2.1 billion). Put another way, Amazon gained 3 times more revenue year-over-year last quarter than Shopify generated in the past full year.
Source Fool.com
Shopify Inc Stock
With 12 Buy predictions and only 1 Sell predictions the community sentiment for the stock is positive.
As a result the target price of 75 € shows a positive potential of 21.36% compared to the current price of 61.8 € for Shopify Inc.
