Shopify & Amazon : Stock Split Growth in June ‘22🚀
@daz888888888：
$Shopify(SHOP)$ $Amazon.com(AMZN)$ Several companies have announced stock splits this year. While investors were initially enthusiastic, that sentiment has faded as macroeconomic headwinds have pummeled the market. The growth-heavy Nasdaq Composite is now down 28% from its high, and many popular stocks have fallen even further. For example, the stock prices of Shopify (SHOP 0.43%) and Amazon (AMZN -3.84%) have fallen 78% and 41%, respectively. Both companies plan to split their common stock in June, making the share price more accessible for investors. More importantly, Shopify and Amazon are key players in the multi-trillion-dollar e-commerce industry, and both stocks are trading at bargain prices. 1. Shopify Shopify simplifies commerce. Its software helps businesses manage sales, orders, and inventory across brick-and-mortar stores and various digital channels. That includes online marketplaces like Amazon and Walmart, as well as branded websites, mobile apps, and social media. Through its platform, sellers can also access critical services like payment processing, marketing tools, and small business loans. In short, Shopify is an end-to-end solution for omnichannel commerce, and its software empowers businesses to grow their own brand across multiple sales channels. That value proposition differentiates it from Amazon, and it has made Shopify the most popular e-commerce software vendor, both in terms of market presence and user satisfaction, according to a G2 Grid Report. For context, Shopify powered 10.3% of online retail sales in the U.S. last year, which puts it in second place behind Amazon. As a final thought, CEO Tobias Lütke recently purchased $10 million in Shopify stock, and other executives have made similar moves. That strongly suggests Lütke and his team believe the business will be worth more in the future. And with shares trading at 9.5 times sales -- their cheapest valuation in five years -- now looks like a great time to buy this beaten-down growth stock. 2. Amazon Amazon operates the most visited e-commerce marketplace in the world. In 2021, its platform powered 41% of online retail sales in the U.S. To reinforce that edge, the company has continued to grow its logistics infrastructure in recent years, enhancing its ability to control shipping costs and delivery times. In fact, Amazon actually has excess capacity in its fulfillment and transportation network, according to CFO Brian Olsavsky. Amazon's latest earnings report underwhelmed Wall Street. The company posted its first quarterly loss since 2015. But investors that cashed out overlooked a few important details. Its cloud computing business -- Amazon Web Services (AWS) -- captured a 33% market share in the first quarter, outpacing second-place Microsoft Azure by 12 percentage points. Financially, AWS's revenue growth accelerated to 37%, and its operating margin expanded 450 basis points to 35.3%. That makes AWS far more profitable than Amazon's retail business. To that end, Amazon's bottom line has grown more quickly than its' competitors. Here's the big picture: Amazon has a strong presence in three important industries, leaving plenty of room for future growth. And with shares trading at 2.3 times sales -- their cheapest valuation in the last five years -- chances are you'll regret not buying this growth stock on the dip.
Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.
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