Motley Fool Hidden Gems Investing Shopify Retreats, Amazon Attacks
27 snips
May 6, 2026 
Lou Whiteman, longtime Motley Fool commentator on market strategy, and Matt Frankel, investing analyst focused on long-term stocks and personal finance, unpack Shopify’s strong quarter and shaky guidance. They dig into Shopify’s balance sheet and investments. They also explore Amazon’s new supply-chain service and why it rattled shipping companies.
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Shopify Growth Good But Guidance Disappointed
- Shopify posted 34% revenue growth in Q1 and GMV topped $100 billion, but missed earnings expectations for the second consecutive quarter.
- Investors punished Shopify because forward guidance implies slowing to high-20s growth while the stock trades at ~65x forward earnings, so expectations matter more than raw results.
Shopify's Big Investment Holdings Come From Partnerships
- Shopify holds roughly three quarters of its balance sheet in cash, treasuries, or equity investments tied to partnerships rather than core operations.
- Matt explains these stakes (like Affirm and Global-e) came as deal sweeteners for partnerships and management says they're not central to Shopify's operating focus.
Account For Stock Compensation When Valuing Cash Rich Firms
- Consider the dilutive effect of heavy stock-based compensation even when a company generates lots of cash.
- Tyler suggests management could use excess cash to reduce dilution or return capital instead of growing equity grants.