Shopify vs. BigCommerce: Which E-Commerce Stock is a Stronger Pick?

E-commerce Market Overview - The e-commerce market is projected to be worth $10.19 trillion in 2025 and expected to reach$ 21.22 trillion by 2030, with a CAGR of 15.8% from 2025 to 2030 [2] Shopify (SHOP) Analysis - Shopify is experiencing robust growth in its merchant base, driven by user-friendly tools such as Shop Pay and the Shop App [3] - Shop Pay processed $27 billion in gross merchandise value in Q4 2024, representing a 50% year-over-year increase and accounting for 41% of gross payment volume [4] - Shopify is expanding its presence in various verticals, including apparel and health, and has added brands like Karl Lagerfeld and FC Barcelona [5] - Investment in AI-driven tools like Shopify Sidekick and Shop Inbox is enhancing customer engagement and operational efficiency [6] BigCommerce (BIGC) Analysis - BigCommerce is benefiting from its expanding portfolio, particularly with the introduction of Catalyst, which enhances B2B and B2C e-commerce experiences [7][8] - Catalyst has been well-received and is expected to differentiate BigCommerce in the market, with plans for more bundled solutions in 2025 [8] - BIGC's Annual Recurring Revenue (ARR) grew 4% year over year to nearly$ 350 million, with enterprise ARR growing 7%, now comprising 75% of total ARR [10] Stock Performance and Valuation - In the trailing 12-month period, Shopify shares gained 26.8%, while BigCommerce shares lost 10% due to macroeconomic uncertainty and competition [11][12] - Both SHOP and BIGC shares are currently considered overvalued, with SHOP trading at a forward Price/Sales ratio of 10.34X compared to BIGC's 1.26X [15] - The Zacks Consensus Estimate for SHOP's 2025 earnings is $1.49 per share, indicating a 14.62% increase year over year, while BIGC's estimate is 27 cents per share, reflecting a 3.57% decline [18] Conclusion - Shopify is well-positioned for growth due to its expanding merchant base and focus on improving client engagement, while BigCommerce is enhancing its offerings to capture more market share [19]