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Investment Q&A

Not investment advice or solicitation to buy/sell securities. Do your own due diligence and/or consult an advisor.

Q: hello 5i:
IF one wanted to buy one Consumer Discretionary stock and nothing the obvious size difference, could you comment on current fundamental/valuation differences, growth rates, balance sheet advantages, etc

thanks
Paul L
Asked by Paul on March 25, 2025
5i Research Answer:

AMZN is 32X earnings, with expected EPS growth in the 25% range this year. It produces $116B in cash flow annually. SHOP is is 72X earnings, with growth in the 77% range. Cash flow is $1.6B. SHOP stock is outperforming AMZN this year. AMZN does have some debt, whereas SHOP has $5.4B cash. We would side with AMZN for conservative investors, and SHOP for growth-focused investors. 

Authors of this answer, directors, partners and/or officers of 5i Research and/or affiliated companies have a financial or other interest in AMZN.