The article compares Shopify (SHOP) and Target (TGT) as two different ways to invest in modern commerce. Shopify serves millions of merchants in over 175 countries and reported FY 2025 revenue of nearly $11.6 billion (up roughly 30.1%), net income of about $1.2 billion and free cash flow near $2.0 billion, while stock-based compensation was roughly 22.1% of operating cash flow. Target, with nearly 2,000 stores, reported FY 2025 revenue of nearly $104.8 billion (down roughly 1.7%), net income of about $3.7 billion and free cash flow near $2.8 billion. The article details legal and competitive risks for both companies, and Target's forward P/E of 15 compares with 91.5 for Shopify. The author says they would choose Target if buying today, citing new CEO Michael Fiddelke's $5 billion plan to upgrade stores, product mix and supply chain, and a return to sales growth in fiscal 2026.
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Singapore-based Sea Limited (SE) operates the Shopee e-commerce platform, the Monee digital financial services business and the Garena game studio, and its stock is down 25% this year. In Q2 2026, Shopee processed 4.2 billion orders worth $38.3 billion, with both figures up about 28% year over year. Monee had over 40 million active borrowers, up 34%, and its outstanding loans rose 62.5% to $11.1 billion. Sea's Q2 revenue reached $7.8 billion, up 48.1%, with adjusted EBITDA of $917.2 million, up 10.6%. The author views the price-to-sales ratio of 2.1 as below the three-year average of 3.3, and plans to buy if the stock falls further.
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The article compares MercadoLibre (MELI), a Latin America marketplace with the Mercado Pago fintech arm, with Shopify (SHOP), a software platform for merchants worldwide. In FY 2025, MercadoLibre reported revenue of nearly $28.9 billion, up 39.1%, net income of about $2.0 billion and free cash flow of nearly $10.8 billion. Shopify reported revenue of nearly $11.6 billion, up about 30.1%, net income of roughly $1.2 billion and free cash flow of nearly $2.0 billion, though stock-based compensation equal to about 22.1% of its operating cash flow inflates that cash figure. The piece lists MercadoLibre's risks as Asian e-commerce competition, Latin American inflation and currency devaluation, and fintech regulation, and Shopify's as competition from Amazon and exposure to small merchants in downturns.
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