AMZN - Better Growth Stock for 2024: Amazon vs. Shopify

2023-12-21 06:33:00 ET

Wall Street fell back in love with both Shopify (NYSE: SHOP) and Amazon (NASDAQ: AMZN) stocks in 2023. It helped that sales trends have rebounded in the e-commerce industry following the post-pandemic growth hangover. This recovery happened to coincide with falling costs at these businesses, leading to improving profits and cash flow.

Shopify and Amazon stocks are riding that positive momentum as we approach 2024. But which one is the better choice for growth-focused investors right now? Let's dive right in.

If you're into quickly expanding businesses, you'll find a lot to like about Shopify. Sales were up a blazing 25% in the most recent quarter thanks to much higher sales volumes on its platform, plus increasing revenue from merchants. Shopify's subscription sales are being lifted by that higher demand and rising prices following recent price hikes. Average contract sizes are benefiting from its growing services portfolio that includes things like payments processing and dozens of other business solutions.

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