GMBStaff
29 Apr 24
Amazon's transition towards a "Pay to Play" vendor ad model could compromise its value to vendors and customers, increasing potential for direct sales. Shopify's highly integrated platform with social media reach makes it more valuable for vendors and potentially customers than Amazon. If Shopify cu...
Amazon's transition towards a "Pay to Play" vendor ad model could compromise its value to vendors and customers, increasing potential for direct sales. Shopify's highly integrated platform with social media reach makes it more valuable for vendors and potentially customers than Amazon. If Shopify cut its R&D and marketing while continuing sales growth, the company could earn an EPS of ~$5 by 2030, making it fairly valued today. At its current valuation, Shopify's high growth rate must not falter, even as it transitions towards a higher profit model. Shopify's external risks appear low, as its platform has superior tools to its competitors at a reasonable price for most businesses.
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