Shopify (SHOP) has lost one of its long-time supporters after Mawer Investment Management
said it exited the stock over concerns about rising competition in the e-commerce sector.
Ottawa-based Shopify became Canada’s most valuable public company during the pandemic,
soaring above a $200 billion market capitalization, but the stock has plummeted 75% this year
to currently trade at $445 a share.
Mawer first invested in the e-commerce software provider in 2017, two years after it went public,
and later trimmed its position as the stock rose. But the business of e-commerce is getting
increasingly crowded, leading Mawer Investment to dump its entire holding of Shopify stock.
Specifically, Mawer Investment cited a move by Amazon (AMZN) to combine payment and
fulfillment services and make them available on other websites, a direct encroachment on
Shopify’s turf.
In May of this year, Shopify announced the largest acquisition in its corporate history, a $2.1
billion U.S. deal to acquire privately held start-up Deliverr. Some analysts and investors have
criticized the deal, saying Shopify may be spending too much to buy Deliverr.
Mawer Investments said it made four to five times its money on its Shopify investment before
selling its entire position in the stock.
