Key Points
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Amazon’s advertising business reported an annual run rate of $69 billion in 2024, doubling over four years.
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Shopify currently captures over 12% of the U.S. e-commerce market by gross merchandise volume.
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Analysts predict continued growth in e-commerce and demand for services provided by both companies.
Amazon
Amazon (NASDAQ: AMZN) is a leader in e-commerce and its most significant profit sources come from Amazon Web Services (AWS) and advertising. AWS remains the leader in cloud computing, contributing billions in sales. The company reported an advertising run rate of $69 billion at the end of 2024, highlighting substantial growth. Despite competition, Amazon’s broad customer base and innovative culture position it for continued success.
Shopify
Shopify (NASDAQ: SHOP) helps merchants create online storefronts and has established over 12% market share in the U.S. e-commerce sector. The platform’s extensive app store and social media selling capabilities illustrate its competitive advantages. Although the company has not yet achieved consistent profitability, improvements in margins and cash flow suggest it could reach profitability within the next few years, making it a potentially strong investment.
