If you had to choose either Apple or Shop for the next five years, what would u choose and why?
AAPL is the 'safer' call, but SHOP may have more growth potential. Apple continues to be at the mercy of its own product cycle, and phones are still half of its business. Consensus estimates only calls for about 10% growth, yet it is now at an historically-expensive 31X earnings. SHOP is not perfect, but is expected to have a much higher growth rate as merchants move to its platform. Growth should be in the 25% range. It is more expensive because of this. But if interest rates do peak, we would expect SHOP stock to have more upside potential. Note, we think Apple is probably a better overall and safety company. Apple also pays a small dividend. But SHOP stock should outperform it under the right conditions, at least in the medium term.
Authors of this answer, directors, partners and/or officers of 5i Research and/or affiliated companies have a financial or other interest in AAPL.