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Shopify continues adding to its expense base, making it harder to turn profits.
Shopify's (SHOP -2.71%) strategy resembles Amazon's (AMZN 1.26%), with costly fulfillment centers, logistics, and other capital-intensive business segments. Amazon's profit margins have long trailed eBay's (EBAY -0.15%), 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.
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.
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