Square and Shopify are both expected to grow at strong, above average rates for the foreseeable future.
However, Shopify's valuation is at lofty levels, while Square's valuation is much lower.
I see more upside for Square at these levels.
Square (SQ) and Shopify (SHOP) are both achieving strong above average growth. However, Shopify's stock keeps skyrocketing while Square's stock recently declined. The decline in Square's stock improved the valuation, which could make it a better buy from these levels.
Square also has key competitive advantages over Shopify. Overall, I think both companies will thrive with above average growth over multiple years. However, at this point, Square is valued much lower than Shopify. That could make the stock a better buy from the current levels.
The article is for informational purposes only (not a solicitation to buy or sell stocks). David is not a registered investment adviser. Kirk Spano is an RIA. Investors should do their own research or consult a financial adviser to determine what investments are appropriate for their individual situation. This article expresses my opinions and I cannot guarantee that the information/results will be accurate. Investing in stocks involves risk and could result in losses.
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