Core Viewpoint - Shopify and Walmart are now competing for the same customers, with both companies focusing on digital sales channels, making it essential to evaluate which stock is a better buy today [1] Group 1: Walmart's Transformation - Walmart has shifted its strategy to embrace digital sales, investing hundreds of millions into automated shipping and fulfillment centers to compete with online retailers like Amazon [3] - The company's revenue growth rates have rebounded, with net sales increasing by 3.4% last quarter, driven by a 17% rise in e-commerce sales [3] - Walmart operates 10,623 stores, which is over 1,000 fewer than in 2018, indicating a shift from physical expansion to enhancing digital capabilities [2] Group 2: Shopify's Growth - Shopify has maintained a strong focus on e-commerce from its inception, offering a platform that allows merchants to sell online easily, which has led to sales growth exceeding 20% annually [4] - The company commands a 28% share of the U.S. e-commerce platform market, providing a significant growth runway for the future [7] Group 3: Valuation Comparison - Shopify's stock trades at a premium, with a price-to-sales ratio of 14 times, while Walmart trades at just 0.75 times sales [6] - In terms of free cash flow yield, Shopify stands at 0.9%, compared to Walmart's 3.1%, indicating a difference in cash flow generation [6] - Shopify's earnings multiple is significantly higher at 870 times earnings, while Walmart's is 31 times earnings, reflecting the contrasting growth profiles of the two companies [6] Group 4: Investment Considerations - Shopify is seen as a high-growth investment with potential long-term upside, suitable for investors willing to take on more risk [7] - Walmart is viewed as a more conservative investment with stable cash flow and profits, appealing to investors looking for lower risk [7]

Laying a strong financial foundation early in life is crucial when choosing stocks for young investors. Taking advantage of the power of compounding allows even modest investments to grow significantly over extended periods. In other words, small, regular contributions can snowball into a significant nest egg over time. The historical performance of the S&P 500 index, averaging around a 10% annual return with dividends reinvested, exemplifies the wealth-creation potential of equities. Thus, the key is to in ...

Shopify was once one of the market's favorite growth stocks. Shares are a buy after a big correction.Shopify (SHOP -0.09%) stock rarely goes on sale. Since the company went public in 2015, shares have nearly always traded above 15 times sales. At their peak, Shopify shares were priced at an astounding 60 times sales.After a sharp correction, however, Shopify stock now trades at its cheapest valuation in years. Shares are already on the rebound but remain 53% below their previous highs.If you want to buy a t ...

This month, Morgan Stanley strategist Edward Stanley revealed the investment firm's top high-conviction stock picks that will directly benefit from the rise of artificial intelligence (AI). While Stanley admitted that we are still in the "experimental" phase of AI, "the margin expansion in these names should be meaningful over the second half of 2024 and into 2025." There were some familiar names on Morgan Stanley's list, including CrowdStrike, Meta Platforms, Tesla, and Snowflake. One of the firm's top pic ...

Let's be honest: Most investors love Shopify (SHOP 4.90%) stock because of how much it's gone up in the past. The company went public less than 10 years ago and is already up close to 3,000%. For perspective, $1,000 invested in Shopify stock when it went public would be worth more than $30,000 today.For some investors, Shopify is nothing more than a stock ticker. But it's crucial to understand what a stock's underlying business does, rather than only pay attention to the movement of its ticker.Here's one sm ...

Shopify is one of the most watched stocks on Wall Street, and if you were lucky enough to think of buying it when it first went public, your investment would be worth almost 3,000% more right now.There still may be much more to come. But Shopify has a market capitalization of over $100 billion, and there are younger companies that might have more growth opportunities today. If you missed out on Shopify's early gains, consider buying Global-e Online (GLBE -3.07%) stock instead. Here's why.Global-e is just ge ...

JHVEPhoto There's a great quote out there by hedge fund manager Steve Mandel that goes something like this: "I don't need an analyst to tell me when a 10 PE stock is cheap. I need an analyst to tell me when a 40 PE stock is cheap." The meaning of this quote is simply that it can be tricky to find value in expensive-looking stocks, but doing so can pay off big time. This is because high multiples can put off value-conscious investors, even if a company's potential future results around growth and profita ...

In 2024, many analysts and experts anticipate an economic revival as we see lower inflation rates, solid growth and more jobs. Certainly, after a stressful past few years, such an outlook is refreshing. Several high-growth stocks have surged, becoming millionaire-maker stocks investors wish they had bought during the market’s doldrums in 2022. But that’s neither here nor there. Many investors aim to find the next high-growth stocks to take a decently sized portfolio into seven figures. Whether it’s folks lo ...

Shopify (SHOP -0.33%) has struggled with profitability over the years, even as it has been growing at an explosive pace. But the future looks brighter for the business. Shopify has cut expenses, it has become leaner, and staying out of the red is no longer a stretch.The company has also been expanding operations to serve a wider and more diverse group of customers. And by doing so, that could help the business become a better long-term investment and lead to greater consistency in its bottom line. The key t ...

In the latest market close, Shopify (SHOP) reached $78.42, with a -0.33% movement compared to the previous day. This change lagged the S&P 500's 0.29% loss on the day. Meanwhile, the Dow experienced a drop of 0.35%, and the technology-dominated Nasdaq saw a decrease of 0.3%.Prior to today's trading, shares of the cloud-based commerce company had lost 2.47% over the past month. This has lagged the Computer and Technology sector's gain of 3.61% and the S&P 500's gain of 4.42% in that time.Analysts and investo ...