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Shopify Is Becoming More Like Amazon and Less Like eBay -- and Not in a Good Way

Shopify continues adding to its expense base, making it harder to turn profits.

By Parkev Tatevosian, CFA – Feb 18, 2023 at 1:17PM EST

Shopify's (SHOP 2.08%) strategy resembles Amazon's (AMZN +0.53%), with costly fulfillment centers, logistics, and other capital-intensive business segments. Amazon's profit margins have long trailed eBay's (EBAY +2.75%), though Amazon experienced better growth. Investors should be aware that this means profits could remain elusive for Shopify.

*Stock prices used were the afternoon prices of Feb. 15, 2023. The video was published on Feb. 17, 2023.

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About the Author

Parkev Tatevosian, CFA
A Fool since 2019, and a graduate of Cal State LA with a B.S. in Finance and M.A. in Economics. Parkev is an adjunct professor of Finance and enjoys reading about financial and economic history. You'll often find him writing about stocks in the consumer goods and technology sectors.
TMFParkev
X@TMFParkev

John Mackey, former CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool's board of directors. Parkev Tatevosian, CFA has positions in eBay. The Motley Fool has positions in and recommends Amazon.com and Shopify. The Motley Fool recommends eBay and recommends the following options: short April 2023 $52.50 calls on eBay. The Motley Fool has a disclosure policy.

Parkev Tatevosian is an affiliate of The Motley Fool and may be compensated for promoting its services. If you choose to subscribe through fool.com/parkev, he will earn some extra money that supports his channel. His opinions remain his own and are unaffected by The Motley Fool.

Stocks Mentioned

Shopify Stock Quote
Shopify
NASDAQ: SHOP
$105.40
(-2.08%)-$2.24
Amazon Stock Quote
Amazon
NASDAQ: AMZN
$275.00
(+0.53%)+$1.45
eBay Stock Quote
eBay
NASDAQ: EBAY
$108.15
(+2.75%)+$2.89

*Average returns of all recommendations since inception. Cost basis and return based on previous market day close.

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