Shopify triples Amazon's returns in three-year e-commerce bet
On October 5, 2020, a $10,000 bet was placed on two of the biggest names in e-commerce: Shopify and Amazon. Three years later, the results highlight the dramatic differences in performance within the same sector.
By October 2023, the initial investment in Shopify had more than tripled, reaching $30,678. Meanwhile, the same amount in Amazon grew to $19,959. The divergence in returns was driven entirely by the choice between these two e-commerce giants.
The path to these outcomes wasn't straightforward. Shopify's growth included periods of pullback before surging ahead. Amazon, on the other hand, saw steady but slower progress without the necessary acceleration to close the gap.
Over the three-year span, Shopify's position achieved a 3.07x multiple, while Amazon's hit nearly 2x. The stark contrast underscores how two companies under the same broad sector label can deliver vastly different results.