Shopify vs. Amazon: Which E-Commerce Stock Has The Edge Now?

Shopify SHOP and Amazon AMZN are strong players in the e-commerce industry. While Shopify is growing its presence in the e-commerce domain by offering user-friendly tools and an extensive app marketplace, AMZN is expanding its footprint in the e-commerce space by diversifying its product offerings, enhancing delivery infrastructure and entering new global markets to solidify its dominance.According to the Morder Intelligence report, the e-commerce market is projected to be worth $10.19 trillion in 2025. It is expected to reach $21.22 trillion by 2030, with a compound annual growth rate of 15.8% over the 2025-2030 period. Both SHOP and AMZN are likely to gain from the massive growth opportunity.So, Shopify or Amazon— Which of these e-commerce stocks has the greater upside potential? Let’s find out.The Case for SHOP StockShopify is benefiting from robust growth in its merchant base. In the first quarter of 2025, Merchant Solutions’ revenues were $1.74 billion and accounted for 73.7% of Shopify’s total revenues. Growth was driven by its merchant-friendly tools, including Shop Pay, Shopify Pay Instalments, Sign in with Shop and the Shop App. Strong adoption of these solutions holds promise for Shopify’s prospects.Among these offerings, Shop Pay stands out as a key driver of this momentum. The app processed $22 billion in Gross Merchandise Value in the first quarter of 2025, up 57% year over year. Large brands like Birkenstock, Lilly Pulitzer, and Johnny were adopted by Shop Pay, enhancing Shopify’s portfolio.Shopify’s investment in AI-driven tools, such as Shopify Sidekick, tariffguide.ai and Shop Inbox, is helping merchants improve customer engagement and streamline operations. By leveraging AI, Shopify enhances its platform's power and user-friendliness.An expanding partner base that includes TikTok, Snap, Pinterest, Criteo, IBM, Cognizant, Amazon, PayPal, Roblox, YouTube, Target, Manhattan Associates, COACH, Oracle and Adyen is expected to expand its merchant base further.The Case for AMZN StockAmazon is expanding its footprint in the e-commerce space by continuously expanding its product offerings. The company’s expanding global presence, growing capabilities in grocery, pharmacy, healthcare and autonomous driving are key positives. In the first quarter of 2025, the company expanded its product offerings by welcoming well-known brands like Oura Rings, Michael Kors, and The Ordinary, as well as introducing a luxury shopping experience with Saks featuring high-end brands like Dolce&Gabbana and Balmain.During the first quarter, Amazon held multiple deal events worldwide, helping customers save more than $500 million across the Big Spring Sale in the United States and Canada, Spring Deal Days in Europe, and Ramadan/Eid sales in the Middle East. In the reported quarter, Amazon set new delivery speed records for Prime members and delivered more items same-day or next-day than in any previous quarter.Amazon’s focus on everyday essentials has been a key catalyst in bolstering its e-commerce growth. Everyday essentials grew more than twice as fast as the rest of Amazon’s business and represented one out of every three units sold in the United States. With more than $100 billion in gross sales from grocery items alone, Amazon solidified its position as one of the largest grocers in the United States.Price Performance and Valuation of SHOP and AMZNYear-to-date, SHOP shares have gained 4.8% while AMZN shares have lost 2.7%. The increase in SHOP shares can be attributed to robust growth in its merchant base, driven by its merchant-friendly tools. However, Amazon’s shares declined due to the challenging macroeconomic environment. A broader market weakness in the tech sector and persistent fear over mounting tariffs have added to the pressure. SHOP and AMZN Stock PerformanceImage Source: Zacks Investment ResearchValuation-wise, SHOP and AMZN’s shares are currently overvalued, as suggested by a Value Score of F and D, respectively. In terms of forward 12-month Price/Sales, SHOP shares are trading at 12.28X, higher than AMZN’s 3.14X.Price/Sales (F12M)Image Source: Zacks Investment ResearchHow Do Earnings Estimates Compare for SHOP & AMZN?The Zacks Consensus Estimate for SHOP’s 2025 earnings is pegged at $1.40 per share, which has declined 3.4% over the past 30 days, indicating a 10.77% increase year over year.Shopify Inc. Price and Consensus Shopify Inc. price-consensus-chart | Shopify Inc. QuoteThe Zacks Consensus Estimate for AMZN’s 2025 earnings is pegged at $6.31 per share, which has increased by a penny over the past 30 days, indicating a 7.69% increase year over year.Amazon.com, Inc. Price and Consensus Amazon.com, Inc. price-consensus-chart | Amazon.com, Inc. QuoteSHOP’s earnings beat the Zacks Consensus Estimate in three of the trailing four quarters while missing the same once, with an average surprise of 14.87%. AMZN’s earnings beat the Zacks Consensus Estimate in all the trailing four quarters, delivering an average surprise of 20.68%. The average surprise of AMZN is higher than that of SHOP.ConclusionShopify is benefiting from strong growth in its merchant base and growing enterprise customer base. However, challenging macroeconomic conditions and new tariffs are expected to hurt SHOP’s near-term prospects. However, despite market challenges, Amazon’s diverse product offerings, strong global presence, and stronger earnings surprises position it as the better pick. With faster deliveries and a focus on everyday essentials, Amazon is better positioned to succeed in the long run.Shopify and Amazon carry a Zacks Rank #3 (Hold) at present.You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.Zacks Names #1 Semiconductor StockIt's only 1/9,000th the size of NVIDIA which skyrocketed more than +800% since we recommended it. NVIDIA is still strong, but our new top chip stock has much more room to boom.With strong earnings growth and an expanding customer base, it's positioned to feed the rampant demand for Artificial Intelligence, Machine Learning, and Internet of Things. Global semiconductor manufacturing is projected to explode from $452 billion in 2021 to $803 billion by 2028.See This Stock Now for Free >>Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Amazon.com, Inc. (AMZN): Free Stock Analysis Report Shopify Inc. (SHOP): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks Weiter zum vollständigen Artikel bei Zacks