SHOP - Better Stock Buy: Shopify vs. Amazon
2023-12-06 05:05:00 ET
Don't call it a comeback, but e-commerce is finally a growth sector again. Investors avoided the industry thanks to a demand slump in late 2022 into early 2023 following huge gains during the pandemic.
Sales are rising again now, though, and that boost is helping stocks like Amazon (NASDAQ: AMZN) and Shopify (NYSE: SHOP) recover some lost ground. Both stocks are valued at a discount to where they were during the height of the pandemic, but which one is the better fit for your portfolio? Let's dive right in.
In the long list of reasons why an investor might want to own Amazon's stock, e-commerce likely doesn't crack the top 5. More exciting factors supporting the business today include its services segment, which is becoming more valuable thanks to artificial intelligence (AI) tech. The AWS platform is still early on its growth curve, too, with many more years of gains ahead as businesses transition to cloud-based infrastructures.
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Better Stock Buy: Shopify vs. Amazon